Recruiting Immigrant Workers

CANADA
Recruiting Immigrant
Workers:
Canada
2019
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Please cite this publication as:

OECD (2019), Recruiting Immigrant Workers: Canada 2019, Recruiting Immigrant Workers, OECD
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Recruiting Immigrant Workers

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 FOREWORD 3

Foreword

This review of Canada’s labour migration policy is the tenth in a series conducted
by the OECD Secretariat as a follow-up to the 2009 High Level Policy Forum on
International Migration. The rationale for this initiative was the recent growth in
labour migration observed in many countries and the likelihood that recourse to
labour migration would increase in the context of demographic ageing. Prior to the
global economic crisis of the late 2000s, many countries had made substantial
changes to labour migration policies with a view to facilitating recruitment from
abroad. With the introduction of these changes, more prominence was accorded to
the question of their effectiveness, and more broadly to the objectives of labour
migration policy in general. Although the economic crisis put a damper on labour
migration movements, it did not stop them entirely, and interest in labour migration
policy is unlikely to diminish in the near future.
The central objective of labour migration policy is to help meet those labour market
needs which cannot be satisfied through tapping domestic labour supply in a
reasonable timeframe, without adversely affecting the domestic labour market and
without hindering development prospects in vulnerable origin countries. Although
the objective itself can be easily stated, specifying the criteria for assessing the
success of policy in achieving it is a complex matter. It involves evaluating how
well labour market needs have been identified and whether migration has had an
impact on the labour market, both of which are analytically difficult.
This series of reviews addresses the question of whether labour migration policy is
effective in meeting labour market needs without adverse effects, and whether the
policy is efficient. To address these questions, this review aims to analyse two key
areas: i) the labour migration system and its characteristics, in terms of policies in
place and the labour migrants who arrive; and ii) the extent to which it is responding
to the current and forecasted needs of the domestic labour market, as well as any
impact on the latter.
Canada faces a similar discussion as other OECD countries regarding the capacity
of its labour migration policy to meet current but also unknown future skill needs.
It is in this context that Canada requested the OECD review its labour migration
policy. Since 2015, Canada introduced a federal expression of interest system
(Express Entry) for the selection of permanent high-skilled labour migrants,
overhauled its temporary foreign worker programme, piloted new immigration
programmes and enhanced the role played by provincial and territorial governments
in labour migration management.
Canada is a nation built on immigration and immigration is also key to maintaining
a high-skilled workforce in Canada. This review assesses the performance of the

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4  FOREWORD

new permanent labour migration system in international comparison, following its

first years of operation. It also considers the role of temporary migration policy in
the specific context of a country with a large permanent migration system. Finally,
it looks at the possibilities of provinces and territories to select migrants, the
characteristics of the latter, and the impact of this selection in a country where all
permanent labour migrants enjoy nationwide mobility.

RECRUITING IMMIGRANT WORKERS: CANADA © OECD 2019

 ACKNOWLEDGEMENTS 5

Acknowledgements

This review was drafted by the OECD’s International Migration Division. Chapters
1-3 were prepared by Elisabeth Kamm with contributions from Sankar Ramasamy,
Erik Krassoi Peach and Martina Belmonte. Chapter 4 was prepared by Ana Damas
de Matos. Thomas Liebig co-ordinated the report. It benefitted from valuable
comments by Jonathan Chaloff, Jean-Christophe Dumont, Veronique Gindrey,
Philippe Herve and Mark Pearson. Joanne Dundon, Liv Gudmundson, Anna
Tarutina and Lauren Thwaites provided publication support.
This review would not have been possible without the support of Immigration,
Refugees and Citizenship Canada and the Canadian Delegate to the OECD Working
Party on Migration, Mr. Matt de Vlieger. The Secretariat would like to thank
Employment and Social Development Canada as well as Statistics Canada for data
provided and valuable comments. Special thanks go to Yehuala Dagnachew,
Colleen Dempsey, Ying Gai, Martha Justus, Ümit Kiziltan, Stanley Kustec,
Stephanie Leung, Scott McLeish, Corinne Prince, Zhining Qi, Danijela Stojanovic,
Arthur Sweetman, Fraser Valentine and Xiaoyi Yan for their support and advice
throughout the project. The OECD Secretariat would like to thank the Canadian
authorities involved in this project and, indeed, all of their contacts in Canada who
provided timely information and responded to the numerous questions raised.

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 TABLE OF CONTENTS 7

Table of contents

Foreword ................................................................................................................................................ 3
Acknowledgements ................................................................................................................................ 5
Acronyms and abbreviations .............................................................................................................. 11
Executive summary ............................................................................................................................. 13
Assessment and recommendations ..................................................................................................... 17
Summary of main policy recommendations...................................................................................... 27
Chapter 1. Context for labour migration to Canada ....................................................................... 29
Introduction........................................................................................................................................ 30
Overview of labour migration flows and the economic and demographic context ........................... 31
Evolution of Canadian immigration policy........................................................................................ 40
Key actors in the management of labour migration to Canada .......................................................... 51
Composition of labour migration to Canada ...................................................................................... 54
Notes .................................................................................................................................................. 60
References.......................................................................................................................................... 62
Chapter 2. Permanent labour migration ........................................................................................... 65
Evolution of the Points-Based System ............................................................................................... 66
Express Entry ..................................................................................................................................... 71
Key issues in the functioning of Express Entry ................................................................................. 85
Federal permanent labour migration outside of Express Entry........................................................ 109
Conclusion ....................................................................................................................................... 111
Notes ................................................................................................................................................ 113
References........................................................................................................................................ 115
Annex 2.A. Canada’s points system and process comparison ......................................................... 119
Chapter 3. Temporary labour migration ........................................................................................ 123
Overview of temporary labour migrant groups................................................................................ 124
Common issues for the management of temporary labour migration .............................................. 153
Conclusion ....................................................................................................................................... 164
Notes ................................................................................................................................................ 166
References........................................................................................................................................ 169
Chapter 4. Provincial migration management................................................................................ 171
The interaction between the federal and the provincial governments in selecting labour migrants 172
Federal versus provincial programmes: a comparison between Canada and Australia ................... 179
Economic immigrants selected by federal and by provincial governments: A comparison ............ 180
Inter-provincial mobility of labour immigrants ............................................................................... 188
Settlement of provincially selected immigrants within provinces ................................................... 194
Conclusion ....................................................................................................................................... 196

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8  TABLE OF CONTENTS

Notes ................................................................................................................................................ 198

References........................................................................................................................................ 199

Tables
Table 1.1. Departments in charge of Canadian immigration policy, 1887 to present ........................... 41
Table 1.2. Canada’s immigration levels plan for economic immigration, 2019-21 .............................. 54
Table 2.1. Evolution of the Points-Based System (current FSW entry grid) 1967 to present ............... 69
Table 2.2. FSW entry grid points allocation.......................................................................................... 77
Table 2.3. Total points allocation in the Comprehensive Ranking System ........................................... 79
Table 2.4. Points for core and human capital factors in the CRS .......................................................... 79
Table 2.5. Points distribution in EOI systems ....................................................................................... 83
Table 2.6. Skill transferability points in the CRS .................................................................................. 84
Table 2.7. How the CRS values foreign and Canadian work and study experience ............................. 95
Table 2.8. Most common occupations among invitations issued in percent, 2015-18 ........................ 101
Table 3.1. Median hourly wages in CAD by province or territory...................................................... 129
Table 3.2. Key assessment criteria by TFW Program streams ............................................................ 134
Table 3.3. Processing times of TFW work permit applications, 2015-18 ........................................... 138
Table 3.4. Refusal rates of TFW work permit applications, 2015-18 ................................................. 138
Table 3.5. Completed TFW Program inspections, by fiscal year and outcome .................................. 139
Table 3.6. Completed IMP inspections by fiscal year and outcome ................................................... 148
Table 3.7. International students by citizenship and sign year, 2015-18 ............................................. 150
Table 3.8. Study permit approval rate in % by province, 2014-18 ...................................................... 153
Table 4.1. Provincial Nominees, agreements and PA admissions by province in 2017 ...................... 174
Table 4.2. Education level of provincially and federally selected labour immigrants (PAs) .............. 182
Table 4.3. Skill type of intended occupations of provincially and federally selected labour
immigrants ................................................................................................................................... 184
Table 4.4. Share of immigrants reporting employment earnings by PT of landing and immigration
programme................................................................................................................................... 186

Annex Table 2.A.1. Comprehensive Ranking System ........................................................................ 119

Annex Table 2.A.2. EOI systems in comparison ................................................................................ 122

Figures
Figure 1.1. Permanent labour immigration in selected OECD countries, 2017 .................................... 31
Figure 1.2. Acquisition of nationality among immigrants..................................................................... 32
Figure 1.3. Percentage of tertiary-educated native- and foreign-born ................................................... 33
Figure 1.4. Talent shortage in international comparison, 2018 ............................................................. 36
Figure 1.5. Permanent landed economic immigrants, 2017 .................................................................. 37
Figure 1.6. Permanent landed economic immigrants relative to population, 2017 ............................... 38
Figure 1.7. Old-age dependency ratio ................................................................................................... 39
Figure 1.8. Difference between age-related entries and exits from the working-age population in
OECD countries, based on the 2015 population............................................................................ 39
Figure 1.9. Total and relative annual permanent migration inflows, 1860 to 2020............................... 42
Figure 1.10. Labour immigrants by province and migration programme, 2017 ................................... 45
Figure 1.11. Totals and shares of permanent immigrants by entry stream, 1980-2020......................... 48

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 TABLE OF CONTENTS 9

Figure 1.12. Share of permanent labour immigrants by economic entry class, 1997-2017 .................. 55
Figure 1.13. Work permit holders for work purposes by programme and year in which permits
became effective, 2007-17............................................................................................................. 59
Figure 2.1. Immigration and unemployment rates, 1965-18 ................................................................. 67
Figure 2.2. Express Entry basic functioning.......................................................................................... 71
Figure 2.3. Express Entry high-level principles and processes ............................................................. 73
Figure 2.4. Eligibility criteria to enter the Express Entry pool .............................................................. 78
Figure 2.5. Federal Skilled Worker Program, principal applicants, and spouses and dependants,
2005-17 .......................................................................................................................................... 81
Figure 2.6. ITA issued per Express Entry draw and required pass mark, 2015-2018 ........................... 86
Figure 2.7. How the CRS-cut off score changed during 2018............................................................... 87
Figure 2.8. Median earnings in CAD of labour immigrants by years since admission (landing) and
arrival cohort ................................................................................................................................. 89
Figure 2.9. Applicants invited to apply by ITA in 2017/18 and EE-pool snapshot of August 2018 ..... 90
Figure 2.10. Share of labour migrants by earning groups, Express Entry onshore transitions .............. 96
Figure 2.11. Schematic overview of the links between EE and Job Bank ............................................ 98
Figure 2.12. Distribution of intended occupation group and skill-level of immigrants admitted
under EE ...................................................................................................................................... 100
Figure 3.1. Annual inflow of temporary labour migrants, 2017.......................................................... 125
Figure 3.2. Overview of temporary labour migration ......................................................................... 127
Figure 3.3. Work permit holders by year in which permit(s) became effective and programme (%),
1998-2018 .................................................................................................................................... 128
Figure 3.4. Duration of the advertising period in the labour market test for temporary labour
migration permits, in days, 2018 ................................................................................................. 130
Figure 3.5. Streams of agricultural workers under the TFW Program ................................................ 132
Figure 3.6. TFW Program permit holders with permit(s) by sign year, 2009-18 ................................ 133
Figure 3.7. Over a third of long-time care workers in Canada are foreign-born ................................. 140
Figure 3.8. Admissions of permanent residents under the caregiver category, 1995-2018 ................. 141
Figure 3.9. Median earnings by years since landing, Live-in Caregivers and economic labour
migrants and their spouses and dependants, landing cohort of 2006 .......................................... 144
Figure 3.10. IMP work permit holders by initial sign year and programme, 2007-18 ........................ 145
Figure 3.11. Initial permits to working holiday makers in selected OECD countries, 2010-17.......... 147
Figure 3.12. International tertiary students enrolled in OECD countries, 2016 .................................. 149
Figure 3.13. Field of study of international and national tertiary level students, 2016 ....................... 151
Figure 3.14. Annual average tuition fees charged by public tertiary educational institutions to
foreign students in USD, 2015/16 ............................................................................................... 152
Figure 3.15. Attracting Talent indicators for workers with master/doctoral degree, 2019 .................. 154
Figure 3.16. Change in unemployment rate and labour market tested work permit levels 2009-18 ... 155
Figure 3.17. Labour market tested work permit holders as share of labour force (LF) and
unemployment rates, by region 2015-18 ..................................................................................... 156
Figure 3.18. Admissions of permanent labour migrants (principal applicants in economic classes)
by previous permits, 2006-16 ...................................................................................................... 159
Figure 3.19. Transition paths for temporary workers to permanent residence through economic
programmes ................................................................................................................................. 160
Figure 3.20. Admissions of permanent residents under economic class with prior work permit
holder status................................................................................................................................. 161
Figure 3.21. Duration of post-graduation job search periods in months, 2018 ................................... 162
Figure 3.22. Onshore transitions to permanent residence (%), 2007-17 ............................................. 163
Figure 3.23. Median annual income in CAD by pre-admission experience, cohort of 2008 .............. 164
Figure 4.1. Federally and provincially selected labour immigrants, 2007-17 ..................................... 173

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10  TABLE OF CONTENTS

Figure 4.2. Evolution of federally and provincially selected labour immigrants by province,
2007-17 ........................................................................................................................................ 178
Figure 4.3. Share of women among PNs and non-PNP selected labour immigrants, 2008-18 ........... 181
Figure 4.4. Skill level of provincial and federal labour immigrants by province of intended
residence, 2008-18....................................................................................................................... 185
Figure 4.5. Mobility matrix for principal applicants under the PNP by province of residence and
province of destination ................................................................................................................ 189
Figure 4.6. Mobility matrix for labour migrants selected by the federal government and by Quebec,
by province of residence and province of destination ................................................................. 190
Figure 4.7. Retention rate of principal applicants of the PNP and other labour immigrants ............... 191
Figure 4.8. Mobility matrix for federally, provincially and Quebec-selected labour migrants ........... 192
Figure 4.9. How shares of immigrants in rural areas have evolved, relative to change in urban
regions ......................................................................................................................................... 194
Figure 4.10. Provincial nominee principal applicants by year of landing and place of landing .......... 195
Figure 4.11. PNs (principal applicants) landing years 2006-16 by agglomeration size, compared
with the total population, 2016 .................................................................................................... 196

Boxes
Box 1.1. Integration of immigrants and their children in Canada ......................................................... 32
Box 1.2. Regional governance of immigration in Canada and the case of Quebec............................... 45
Box 1.3. Data sources on labour migration to Canada .......................................................................... 53
Box 2.1. Pre-arrival support ................................................................................................................ 105
Box 3.1. Canada’s Global Skills Strategy .............................................................................................. 135
Box 3.2. Transition of international students in Canada ..................................................................... 161
Box 4.1. Quebec’s Expression of Interest system ............................................................................... 176
Box 4.2. The Atlantic Immigration Pilot ............................................................................................. 193

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 ACRONYMS AND ABBREVIATIONS  11

Acronyms and abbreviations

AIP Atlantic Immigration Pilot

CAQ Certificat d'Acceptation du Québec
CBSA Canada Border Services Agency
CDER Canadian Centre for Data Development and Economic Research
CEC Canadian Experience Class
CETA Canada-EU Trade Agreement
CIC Citizenship and Immigration Canada
CLB Canadian Language Benchmark
COPS Canadian Occupational Projection System
CRS Comprehensive Ranking System
CSQ Certificat de Sélection du Québec
ECA Education Credential Assessment
EE Express Entry
EoI Expression of Interest
ESDC Employment and Social Development Canada
FQR Foreign Qualification Recognition
FSTP Federal Skilled Trades Program
FSWP Federal Skilled Worker Program
GSS Global Skills Strategy
GTS Global Talent Stream
HRSDC Department of Human Resources and Skills Development Canada
IEC International Experience Canada
IELTS International English Language Testing System
IMDB Longitudinal Immigration Database
IMP International Mobility Program
IOM International Organization for Migration
IRCC Immigration, Refugees and Citizenship Canada
IRPA Immigration and Refugee Protection Act
ITA Invitation to Apply
JVWS Job Vacancy and Wage Survey
LCP Live-in Caregiver Program
LMIA Labour Market Impact Assessment
MI Ministerial Instruction
MIDI Ministère de l'Immigration, de la Diversité et de l'Inclusion (Québec)
NCLC Niveaux de compétence linguistique canadien
NIEAP Non-Immigrant Employment Authorization Program

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12  ACRONYMS AND ABBREVIATIONS

NOC National Occupation Classification

NZQF New Zealand Qualifications Framework
PA Principal applicant
PBS Points-Based System
PEQ Programme de l’expérience québécoise
PN provincial nominees
PNP Provincial Nominee Program
PRTQ Programme régulier des travailleurs qualifiés (Quebec Skilled Worker Program)
SAWP Seasonal Agricultural Worker Program
SD Spouses and dependents
SPO Service Provider Organizations
TEF Test d’evaluation de français
TFWP Temporary Foreign Worker Program
TOEFL Test of English as a Foreign Language
TRIEC Toronto Region Immigrant Employment Council

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 EXECUTIVE SUMMARY  13

Executive summary

Canada has not only the largest in terms of numbers, but also the most elaborate
and longest-standing skilled labour migration system in the OECD. Largely as a
result of many decades of managed labour migration, more than one in five people
in Canada is foreign-born, one of the highest shares in the OECD. 60% of Canada’s
foreign-born population are highly educated, the highest percentage OECD-wide.
A broad range of settlement services for labour migrants and their families, both
pre- and post-arrival, complement the system and overall integration outcomes of
migrants and their native-born children are better than in most other OECD
countries. Against this backdrop, Canada is widely seen as a role model for
successful migration management.
Canada’s permanent migration system is based on a rolling three-year plan, with an
annual intake of over 320 000 individuals in 2018, about 0.9% of its population.
The plan balances economic migration – labour migrants and their families – with
family and humanitarian migration, serving a broad range of economic,
demographic and humanitarian objectives. Intake planning for labour migrants –
which together with their families account for almost 60% of the total – includes a
range of annual admissions for the total and the main category, and sets targets for
federal and regionally selected migrants.
In 2015, Canada introduced Express Entry, a dynamic two-step “Expression of
Interest” system for labour migration. The new system for permanent labour
migration selects among eligible candidates from a pool about every other week,
inviting the highest ranked candidates to apply for permanent residency until
reaching a pre-defined number of invitations. To enter the pool, candidates must
meet various minimum criteria for one of three federal programmes managed by
the system. If successful, they are ranked against one another based on a
comprehensive ranking system. A unique feature of the Canadian model, in contrast
to other Expression of Interest systems in New Zealand and Australia, is the degree
of refinement in the ranking system. This allows consideration of positive
interactions of skills, such as that between language proficiency and the ability to
transfer foreign qualifications to the Canadian context. The system is built on an
in-depth assessment of the drivers of outcomes of previous migrants.
Canada is highly reactive to new developments, and changes in policy governing
migration are not only rather frequent but also more strongly evidence-based than
elsewhere. For example, monitoring the composition of invited candidates
following the implementation of Express Entry has already led to two major reforms
of the system. These reforms addressed several initial shortcomings, such as the too
high points attributed for a job offer, which led to a high intake of lesser-skilled
migrants working in the hospitality sector. The system now puts more value on

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14  EXECUTIVE SUMMARY

human capital factors (e.g. education, knowledge of English and/or French) as these
are related with better labour market outcomes. Policy innovations build on a strong
foundation of in-house research and evaluation of programmes and outcomes,
coupled with one of the most comprehensive data infrastructures on migrants in the
OECD.
The Express Entry system selects not only those with the highest potential, but also
allows for ministerial discretion to address political priorities in selection, for
example by providing bonus points. However, as many candidates are clustered in
a narrow range of points, slight changes in points allocation can drastically alter the
selection. Ministerial discretion should thus be used parsimoniously and be
evidence-based, with transparency about the underlying objectives.
A key issue in the system is that requirements for pool entry differ from the criteria
used in the universal points’ allocation within, and thus selection from, the pool.
The three programmes currently managed via Express Entry were designed prior to
its implementation, and the entry criteria for the pool are thus not well-aligned with
its selection criteria. There are also some inconsistencies in the system, with
candidates from the mostly onshore Canadian Experience Class being eligible with
lower language skills than those coming from abroad through the Federal Skilled
Worker Program. What is more, there are very few admissions through the Federal
Skilled Trades programme, with cooks accounting for a large part of these. Most
tradespeople are admitted through other streams, and the programme currently
mainly serves migration in a few occupations where shortages are not necessarily
present, which contrasts with its original objectives. Providing for a single entry
grid based on the core criteria for ultimate selection would simplify the system and
ensure common standards.
In an admission system such as Canada’s, which places heavy emphasis on formal
qualifications through its points allocation, a key challenge is the recognition of
foreign qualifications, and this challenge is exacerbated by the country’s federal
nature. Recognition is a provincial competence, and provinces have different
practices. This is a particular issue in ‘regulated occupations’, such as doctors and
nurses, where licensing is required for the exercising of the profession. While
Express Entry candidates have their language proficiency tested and their foreign
education certified prior to their selection, quite often an assessment – and potential
upgrading – of occupation-specific qualifications is still necessary. These issues can
lead to a situation where migrants are selected based on their skills but in reality
cannot then exercise them. To this end, in addition to better informing potential
migrants about this issue, Canada should further enhance communication and data
sharing among the different stakeholders involved and add incentives within the
system itself to encourage migrants to initiate the licensing process before landing
and/or introduce a specific visa for foreign credentials’ recognition.
A distinguishing feature of the Canadian system is its clear separation of permanent
and temporary labour migration streams. However, over the past decade, the share
of onshore transitions among total admissions has increased two-fold, and these
now account for about half of new labour migrants. This share is likely to increase

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 EXECUTIVE SUMMARY  15

further due to the continuously growing role of provinces and territories in selecting
migrants – who in about three-quarters of cases select those already in Canada – as
well as the Express Entry system, which rewards previous Canadian study, in
addition to Canadian work experience.
An exception to the clear separation of temporary and permanent migration is the
caregiver programme, which has a built-in two-step form of migration, making it
very attractive for caregivers compared with provisions in other countries.
However, most caregivers in Canada leave the occupation within a few years after
admission for permanent residence, as the latter allows for occupational mobility.
A longer required residence prior to transition could thus be considered as an option
for limiting the need for constant high intakes in this category.
The number of temporary foreign workers is increasing, though this group
contribute a smaller share to the labour force (about 1.1%) than in other settlement
countries. Temporary labour migration is constituted of two streams. The first is the
Temporary Foreign Worker Program, which admits foreign workers to meet
specific shortages in the labour market, is rather tightly managed and labour market-
tested. The burdensome procedure for temporary labour migration, especially for
those migrants who are paid above the provincial average, encourages labour
migration that might otherwise be temporary to pass through permanent streams. In
addition, there are no facilitations for renewal of permits. Although the recent
implementation of Canada’s new Global Skills Strategy provides simpler and faster
procedures for some subgroups, the overall set-up remains complex and
simplification should be considered, notably for renewals.
The second component is the International Mobility Program, which admits
temporary migrants with work rights, primarily for a range of other objectives
mostly associated with international business and co-operation, such as youth
mobility schemes and intra-corporate transfers, as well as post-graduate
employment. Whereas the tightly managed Temporary Foreign Worker Program
has continuously declined over the past decade, there has been strong growth in
such international mobility. In contrast to the Temporary Foreign Worker Program
where most permits are employer and occupation-specific, the bulk of beneficiaries
of international mobility obtain open work permits and information on their
intended occupation and destination is often missing. This hampers both monitoring
and assessment of the labour market impact. First steps toward better monitoring
have been taken, and it is important to continue along those lines.
However, the single largest and fastest growing component of international
mobility is the international graduates group, who work under a post-graduation
permit. Initial permits to these individuals have increased five-fold over the past
five years. Indeed, among major OECD recipient countries, Canada has been the
fastest growing destination for international students, whose numbers almost tripled
between 2008 and 2018. International students can work during their studies and
stay for up to three years in the country on a post-graduation permit. Due to the
requirement of at least one year of skilled work experience for admission, direct

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16  EXECUTIVE SUMMARY

transitions from international students to permanent residency are rare, but later
onward transitions are increasingly common.
Permanent labour migration is a shared responsibility between the federal and the
provincial and territorial (PT) governments. The increased role played by provincial
and territorial governments in selection and integration has resulted in a more
balanced geographic distribution of permanent labour migrants across the country
over the past two decades. As permanent migrants enjoy free mobility across
Canada, the rather high retention rate of PT-selected labour migrants and their
different skill profile suggest that PT-streams are indeed complementary to the
federal programmes. What is more, short-to-mid-term labour market outcomes of
PT-selected migrants to date tend to be largely favourable, with a few exceptions.
However, given the large growth in PT-selected migration and the fact that some
programmes are not very selective (with some evidence that the less successful
migrate to other provinces) a continuous monitoring seems warranted to be able to
react if the current rather favourable assessment were to change.
In addition to their own programmes, PTs can also nominate a certain number of
migrants from the Express Entry pool, ensuring their timely selection and priority
processing. A way to ensure that selection of provincial nominees remains
consistent with overall Canadian skill needs would be to direct future growth in the
programme through Express Entry. In turn, a provincial temporary foreign worker
pilot should be considered. This would allow PTs to better respond to regional
cyclical or seasonal labour needs that are currently not met otherwise, without the
need to resort to permanent migration through provincial nomination.
Most of the provincial nominees – like their federally selected counterparts – settle
in metropolitan and agglomeration areas, a development that Canada is currently
addressing with a new rural community-driven programme, with an accompanying
whole-of-family approach to integration, designed to enhance retention. Indeed,
Canada has been at the forefront of testing new, holistic approaches to manage
labour migration and to link it with settlement services, especially in areas with
demographic challenges such as the Atlantic Provinces. The Atlantic Immigration
Pilot, for example, provides a rather holistic approach by linking attraction and
retention through measures such as six-month priority processing, support for
employers, and significant settlement support for the entire family with
personalised settlement plans.
In summary, Canada has been largely successful in managing labour migration.
Core to this success is not only the elaborate selection system itself, but also the
innovation and infrastructure around it, which ensures constant testing, monitoring
and adaptation of its parameters. This includes a comprehensive and constantly
improving data infrastructure, the capacity to analyse such data, and subsequent
swift policy reaction to new evidence and emerging challenges.

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 ASSESSMENT AND RECOMMENDATIONS  17

Assessment and recommendations

Canada has the largest and longest-standing skilled labour migration

programme…
Among OECD countries, Canada has the largest permanent labour migration intake
in absolute terms and the third largest (after New Zealand and Australia) relative to
its population. In 1967, it was the first country to introduce a points-based system
for the selection of labour migrants. Such a system allows not only a selection of
skilled labour migrants based on a range of varied criteria, but also a trade-off and
weighting between different characteristics.
…and the highest educated immigrant population in the OECD
Although less than one in three new permanent migrants to Canada are directly
selected as labour migrants, accompanying family members and subsequent family
migration also tend to be relatively skilled. As a result, a full 60% of Canada’s
foreign-born population are highly educated. This is the highest share in the OECD.
Labour migration meets both demographic and economic objectives and is
carefully balanced with family and humanitarian migration courtesy of a
rolling three-year plan
Labour migration is only one component of the overall migration mix to Canada,
and its intake is carefully balanced with family and humanitarian migration. The
overall migration levels are determined and weighed against each other in a plan
that takes into account a broad range of objectives, including economic needs and
development, population concerns, requests for family reunification and
humanitarian considerations. Starting 2018, the previous annual plan was replaced
by a rolling three-year plan, where a new third year is added each year, with a range
of annual admissions in each category and sub-category. This procedure allows not
only for balancing multiple objectives across a rolling three-year timespan, but also
enables advance planning and adaptations of migration management infrastructure
and settlement services.
Most indicators and research suggest that labour migration has been
largely beneficial to Canada
Given the high-skilled nature of much of immigration to Canada, it is not surprising
that most indicators of integration are favourable in international comparison.
Public acceptance of migration is high, and both labour market and social inclusion
is relatively successful. Research also suggests that immigration to Canada has
supported growth (including on a per capita basis) and innovation.

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Policy-based research and consistent monitoring of outcomes are key

strengths of the Canadian system, coupled with ongoing experimentation
in new techniques
One key feature of the Canadian approach to labour migration is its reactivity to
changing circumstances and new evidence. Indeed, changes to the migration
management system – including to the selection factors – are rather frequent. To
this end, Canada has built one of the most comprehensive data infrastructures on
the characteristics and outcomes of migrants, thereby allowing for observation of
migrants and their situation over time. The country also continuously tests out and
implements new approaches to labour migration, such as, for instance, engaging
with local communities and employers in the recruitment and settlement process.
The new two-tiered Express Entry system for selection of migrants based
on expressions of interest has greatly improved the management of labour
migration
The most impactful recent innovation has been the introduction of a new two-step
“Express Entry” system for the selection of permanent labour migrants in 2015,
following the examples of New Zealand and Australia. This system is based on an
initial expression of interest of eligible candidates who form a pool from which
selection is made. The selection is typically made approximately every fortnight,
based on a universal points’ grid, which ranks the candidates and the highest-ranked
from the pool are then chosen. All candidates in the pool must meet the minimum
entry criteria for one of the three federal programmes managed by Express Entry
(that is, Federal Skilled Workers, Canadian Experience Class, or Federal Skilled
Trades). They remain in the pool for a maximum of 12 months. This system is a
great improvement compared to the previous, which obliged the government to
process all applications meeting the minimum threshold requirements, thereby
resulting in a large backlog.
Express Entry is the most elaborate selection system in the OECD
A unique feature of the Canadian model, in contrast to the other Expression of
Interest systems in New Zealand and Australia, is the allocation of points along a
continuum, with a maximum of up to 1 200 points. This allows for a more refined
selection of labour immigrants than in peer countries. A second innovative
characteristic of the ranking system are points allocated for “interactions” of skills.
For example, research has shown that foreign work experience can only be
“transferred” well to the Canadian context – and hence only granted points – if the
candidate also has a good knowledge of one of the national languages.
There is significant ministerial discretion, which should, however, be used
parsimoniously
The current set-up allows significant ministerial discretion to address political
priorities in selection, for example, the chances of a candidate with certain
characteristics being drawn from the pool may be increased by awarding additional
points. Since most candidates in the pool fall into a relatively narrow range of

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 ASSESSMENT AND RECOMMENDATIONS  19

points, such an allocation of bonus points can drastically alter the composition of
candidates selected. While this maintains flexibility, it also runs the risk of
hampering planning and consistency in selection. Ministerial discretion should thus
be used parsimoniously and be evidence-based, with sufficient transparency of the
underlying objectives.
Most remaining shortcomings of the system in place for the selection of
permanent labour migrants have been addressed through recent reforms…
Testimony to the reactivity of the Canadian system have been two recent reforms
of Express Entry, which took place in late 2016 and mid-2017. These reforms
addressed several of the initial shortcomings of the system as well as taking into
account some of the recommendations of a 2016 OECD interim assessment of the
Canadian labour migration system (see Chapter 1). Examples include the reduction
of the previously excessively high level of points necessary for a job offer and the
placing of more value on Canadian education.
…but consistency between admission and final selection could be improved
by applying aligned criteria to pool entry and selection
These improvements notwithstanding, a key challenge in the system is the fact that
requirements for pool entry differ from the criteria used in the universal points
allocation within, and thus selection from, the pool. Of the three programmes
currently managed via Express Entry, only the Federal Skilled Workers uses a
points’ grid for pool entry. The two other programmes have specific pool eligibility
criteria. All of these programmes were designed prior to Express Entry, and have
not been adapted since. This raises several issues. First, the points’ grid used for
Federal Skilled Workers differs significantly from the points’ grid used in Express
Entry. It rewards up to 22% of the entry grid points for foreign work experience
while, in the absence of other specific skills such as Canadian work experience
and/or national language knowledge, foreign work experience confers no points for
the final selection. It also applies a different age scale. Second, applicants under the
Canadian Experience Class face only specific entry criteria and these are lower than
for a Federal Skilled Worker, for instance, there is no minimum qualification
requirement and there are lower language requirements. The latter is particularly
surprising as these individuals are presumably “pre-integrated” and should thus
have higher language skills than candidates from abroad.
Express Entry allows selection of skilled tradespersons but the primary
route is not via the Federal Skilled Trades pathway, which should be
abolished
A third issue arises for the Federal Skilled Trades class. This was originally
designed to attract tradespersons in the medium skills-range, in occupations with
specific shortages. However, the programme never reached the desired group in
large enough numbers, and in 2018, less than 400 principal applicants were
admitted under this class, with cooks being the most important group – an
occupation that is not, in fact, in strong demand nation-wide. This does not mean
that there are no tradespeople admitted to Canada – but that the vast majority meets

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either the criteria for skilled workers or for Canadian experience (or benefits from
provincial or territorial nomination). As the programme did not meet its objectives,
and there are other pathways which seem to function adequately for this group, it
should be abolished.
A single refined entry grid, based on minimum criteria of the
Comprehensive Ranking System, would ensure common standards for all
federal high-skilled labour migrants
Selectivity, transparency, and consistency of selection would be improved by
channelling all candidates through a single set of core minimum entry criteria. The
core factors of the Comprehensive Ranking System should serve as a basis for this
entry grid, rather than the current Federal Skilled Worker points system. This would
simplify the system and ensure common language and education standards for all
federal labour migrants. Consequently, the current separate pathways for Federal
Skilled Worker, Federal Skilled Trades and Canadian Experience Class could be
merged into one pathway.
Some fine-tuning to the Comprehensive Ranking System would further
improve selection…
The Comprehensive Ranking System itself could also be improved, in particular by
awarding points for Canadian work experience (in the core factor), based on the
wage of the last Canadian job instead of on the duration of the work experience and
the occupational classification. Research has indicated that wages are a better
predictor of labour market outcomes. Wages should not be an absolute indicator
here, but rather considered in light of the hours worked and the location, as wage-
levels differ across Canada. Currently applicants gain half of the available points
for Canadian experience in the core factors for only one year of skilled work
experience, regardless of salary or other criteria. Canadian work experience is also
credited a second time in Express Entry under the skill transferability section and
awards full possible interaction points after a mere two years of experience.
…and the administrative burden lowered by replacing the labour market
impact assessment with integrity checks
All OECD countries value job offers in their admission systems as, by definition,
the immediate labour market integration of the candidates is ensured. While in
contrast to most countries, there is no requirement of a job offer, Canada awards 50
bonus points (200 for a senior management position) in Express Entry for such
candidates. A unique feature of the Canadian points-based selection system is that
a labour market impact assessment (LMIA) is required for many candidates who
benefit from these bonus points. Until November 2016, when the Canadian system
was more demand-driven, half of the total maximum points were awarded to a job
offer, thereby guaranteeing selection. At its introduction, the labour market test thus
ensured that candidates only benefited from the points if their admission did not
present potential harm to the resident workforce. In the current system, which
provides just a fraction of the original points for a job offer, such a strict assessment
seems less warranted. It also appears that many candidates with a job offer shy away

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 ASSESSMENT AND RECOMMENDATIONS  21

from the burdensome process under the new provisions. In 2017, less than 10% of
invited applicants claimed points for a job offer, compared with a third in 2016. For
regular positions (not senior management positions that receive more points), the
LMIA for permanent migration could thus be replaced by integrity checks, or some
differentiation in the points allocated for a job offer between those with an LMIA
and those without.
The recognition of foreign qualifications is a key challenge, exacerbated
by Canada’s federal nature
In a selection system such as Canada’s which places strong focus on formal
qualifications and skilled occupations, assessing and recognising whether
candidates with foreign qualifications and work experience meet Canadian
standards is a challenge. Moreover, in a recent survey among recent arrivals, two-
thirds of economic immigrants reported that getting a job that matches their skills
and qualifications was very difficult or difficult. To make sure they meet Canadian
standards, Canada requires all candidates to have their qualifications assessed. This
assessment, however, is not a formal recognition, as recognition is a provincial
competence, with differing requirements across provinces and territories. This is a
particular issue in regulated occupations, where licensing is required for exercising
the profession. At present, regulatory bodies do not feed the information they collect
back to IRCC. It is hence unclear how many immigrants attempt and pass
provincial/territorial licensing tests in their intended occupation. While efforts have
been made in recent years to enhance co-operation, such as via the Pan-Canadian
Framework for the Assessment and Recognition of Foreign Credentials,
information sharing among the different stakeholders involved could be further
improved, both within and across levels of government. A further step would be to
reduce the administrative burden, for example by requiring licensing bodies to take
the initial qualification assessment for migration as a starting point in the licensing
procedure.
Incentives could encourage potential migrants to start licensing processes
in regulated professions before landing, and methods facilitating pre-
arrival licensing should be tested
The requirement of recognition post-landing for certain occupations can lead to a
situation where migrants, selected based on their skills, are hampered in the actual
exercising of these skills. Apart from better informing candidates about the
necessary steps for recognition, a key issue is the fact that it is not possible to start
licensing in many occupations from outside of Canada. One possibility would be to
allow individuals in the Express Entry pool who have conveyed their interest in
working in a regulated profession to come to Canada and start the licensing process
by issuing a specific short-term visa for the purposes of qualification recognition,
as is currently possible, for example, in Germany. An alternative possibility would
be to include a pre-test for recognition by occupation. A resulting probability scale
could be developed according to which points are allocated – potentially under the
skill transferability points for foreign work experience. This would also serve as an
incentive to migrants to initiate the process before landing.

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Visa fees are lower than those of other settlement countries

Compared with its main competitors, visa fees for migration to Canada are not high.
Canada also provides free settlement services, notably, English/French language
training. This stands in contrast to Australia and New Zealand, where language
services are either not free (New Zealand) or associated with higher visa fees for
those not speaking English well enough (Australia).
There has been a strong growth in regional migration to Canada over the
past two decades…
Immigration to Canada is a shared responsibility between the federal and the
provincial and territorial (PT) governments. In practice, however, prior to the
1990s, the federal government exclusively designed and implemented immigration
policy. In the last twenty years, the role of PTs in immigration increased steadily
and provincial governments currently select, through their own programmes and
selection criteria, about half of the permanent economic immigrants expected to
land in Canada. Such provincial selection has contributed to a more equal
geographic distribution of permanent labour immigrants. In 2017, more than a third
of economic immigrants were located outside the Ontario, British Columbia and
Quebec provinces, compared to just one in ten in 1997.
…although most regionally selected migrants are in urban areas within
these provinces and territories
That notwithstanding, most of the provincial nominees – like their federal- and
Quebec-selected counterparts – settle in metropolitan and agglomeration areas
within these provinces. Only 8% of PT-selected migrants over the past decade
landed in rural areas.
Although initial outcomes of regionally selected labour migrants are good,
there is a need for continued monitoring…
An assessment of the outcomes and mobility patterns of PT-selected migrants
shows a relatively favourable picture. While these migrants have a lower skills
profile than federally selected migrants, their employment rates tend to be above
those of the latter. This suggests that the federal and PT-streams are indeed
complementary, with the PTs being able to choose those migrants who tend to
integrate relatively well in their area. While there are some indications that the less
successful ones move to other provinces, the numbers involved are small. Given
the increase in the number of PT-selected migrants, and the fact that the data lag
behind by a few years, a continued monitoring of the situation seems nevertheless
warranted to be able to react if the current rather favourable assessment were to
change.
…and future growth in provincial nominations should come through
Express Entry
In addition to the provincial programmes, PTs can also nominate a certain number
of migrants from the Express Entry pool, which provides the candidates with half

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 ASSESSMENT AND RECOMMENDATIONS  23

of the total maximum points as a bonus, thereby guaranteeing selection. Such PT-
selected candidates from the pool benefit from priority processing. To make sure
that future growth of provincial nominees remains consistent with overall Canadian
skill needs – which are predominantly on the higher end – it should come primarily
through Express Entry.
The introduction of targeted regional temporary programmes would enable
provinces and territories to better address specific temporary regional
shortages
As a counterpart to this development, a provincial temporary foreign worker pilot
should be considered to target specific regional shortages. This would ensure that
PTs with more cyclical or seasonal labour needs that are currently not met by the
current temporary programmes could resort to temporary labour migration rather
than permanent.
Canada has become a world leader in pre-arrival integration services, but
take-up is still low
Canada is a leader in pre-arrival services, and the provision of such services has
greatly expanded in recent years. Still, only 8.5% of economic immigrants eligible
for pre-arrival services received such support. Depending on the country of origin,
pre-arrival services vary considerably in scope, way of delivery (in-person or
online) and size, but generally consist of information sessions and written material
on the practical issues of the settlement process (Canadian way of life; insurance,
health and housing issues; finding a job; etc.).
The link between integration and retention in the Atlantic Immigration
Pilot is a promising one and could be extended further
To attract and retain skilled workers to fill long-term labour market needs in the
Atlantic Provinces, Canada initiated the Atlantic Immigration Pilot in 2017. This
programme is employer-driven, i.e. local employers apply to a province to become
designated under the pilot and then can offer jobs to eligible candidates. The
programme provides a rather holistic approach by linking attraction and retention
through six-month priority processing, support for employers, and significant
settlement support for the entire family with personalised settlement plans. Building
on the first positive experiences of the Atlantic Immigration Pilot, a similar – though
community-driven – programme for the rural areas is currently being tested.
Onshore transitions are less common than elsewhere, in spite of growing
numbers
As in the other settlement countries, a growing share of permanent labour migrants
have prior Canadian education and/or work experience. In 2017, about 58% of
admitted labour immigrants were onshore transitions, a share below that of other
settlement countries such as the United States and New Zealand (each 86%) and
Australia (67%). Nevertheless, Canada has seen a strong increase in admissions of
individuals with a previous permit over the past two decades. The majority had a
previous work permit, although an increasing share of onshore transitions to

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economic classes have both work and study experience in Canada. Direct
transitions of international graduates – without additional Canadian work
experience as temporary labour migrants – are rare.
Temporary labour migration to Canada is high, but largely for other
purposes than specific labour market needs
In 2017, according to standardised OECD data, around 214 000 temporary labour
migrants entered Canada, a number that has strongly increased in recent years
(+50% 2015/2017). However, three quarters of temporary labour migrants have not
primarily been admitted to meet direct labour needs but for a broad range of other
purposes such as international co-operation, or for allowing students to stay and
find a job in Canada post-graduation. Indeed, whereas labour migration under the
labour market-tested Temporary Foreign Worker Program has consistently declined
since the onset of the global economic crisis in 2007, there has been a parallel strong
increase in other temporary migration with work rights under the International
Mobility Program and as international students. In contrast to workers under the
TFWP whose permit is generally employer- and occupation-specific, the migrants
concerned often have an open work permit.
Little is known about the labour market impact of temporary labour
migrants with open work permits and stronger monitoring is therefore
recommended
In 2018, less than a third of work permits issued to temporary migrants admitted
under the International Mobility Program contained information on the intended
province and occupation. This is largely because most individuals who are in
Canada for such purposes receive open work permits, allowing them to work for
any employer and anywhere in Canada. Intended occupation is only registered for
occupation- and/or employer-specific permits and hence missing in most cases. For
these open work permit holders, Canada is able to capture data on the province and
industry of employment only after several years via linking tax filing data with other
databases. With the limited information on the regional and occupational intentions
of these temporary migrants, assessing their labour market impact is challenging
and, given the importance of this group and their likely concentration in certain
areas and occupations, calls for a closer monitoring in the future. A first step in this
direction has been taken with the Canadian 2019 Budget, which commits money
for the ongoing collection of labour market information related to open work
permits.
The Labour Market Impact Assessment (LMIA) in the Temporary Foreign
Worker Program is extensive…
One of the reasons for the relatively low numbers under the Temporary Foreign
Worker Program is the fact that, apart from foreign workers admitted under the
Global Talent Stream, employers of foreign workers have to undergo a rather
extensive labour market impact assessment. In contrast to other OECD countries,
the procedure for a renewal is the same as for the initial permit. Employers wishing
to hire individuals above the median regional hourly wage have to provide, in

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 ASSESSMENT AND RECOMMENDATIONS  25

addition to other criteria, a “transition plan” in which they specify how they plan to
reduce their dependence on temporary foreign workers and transition to a Canadian
workforce in the future.
…and encourages migration through permanent rather than temporary
channels, especially for higher wages
The burdensome procedure for temporary labour migration, especially for those
migrants who are paid above the regional average, encourages labour migration that
might otherwise prefer to be temporary to pass through permanent streams.
Furthermore, there are no facilitations for the renewal of permits. Although the
recent implementation of Canada’s Skill Strategy provides simpler and faster
procedures for some subgroups, the overall set-up remains complex and
simplifications should be considered, notably for renewals in the higher-paid
category.
Given that most caregivers leave the occupation after permanent residency,
longer durations for transition should be considered
Canada has a long tradition of temporary migration in caregiving occupations. In
2016, over one in three long-time care workers in Canada was foreign-born, one of
the highest share in the OECD. Since the 1980s, Canada has had several dedicated
economic immigration pathways for caregivers, providing them with the
opportunity to transition to permanent residence after two years of full-time
caregiving work. One challenge of the caregivers programme is the fact that more
than eight in ten caregivers leave the occupation within ten years. At the same time,
and partly a result of this, caregiving occupations continue to be in high demand
across Canada. One option would be to augment the time necessary for transition.
Given that caregivers’ family members now have access to work and study permits
under the recently launched caregiver pilots, Canada would remain among the most
attractive OECD countries for caregivers.
International students have favourable conditions to work and stay and
numbers have thus risen strongly
Among OECD countries, Canada has experienced one of the largest growth in
international students in recent years, with numbers having almost tripled over the
past decade. Students are allowed to work during their studies and can stay for up
to three years in the country on a post-graduation permit. Over the past five years,
post-graduation work permits issued to international graduates increased five-fold.
In fact, about six in ten international students in Canada intend to stay in the country
following graduation and an estimation of student stay rates suggests that about this
number manage to do so initially. This is a much higher stay rate than observed in
other OECD countries, although it is not clear how many will ultimately transition
to permanent residency. Since 2017, Canadian education credentials grant
additional points under Express Entry, and more than a third of all permanent labour
migrants admitted to Canada in that year benefited from these bonus points.

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The strong migration management framework in place and quick reaction

times to new developments is the core strength of the Canadian system
In summary, Canada has arguably the most elaborate labour migration system in
the OECD, and it is widely perceived as a benchmark for other countries. Its success
is evidenced in its good integration outcomes and high levels of public acceptance
of migration, as well as its strong appeal to potential migrants. Core to this success
is not only the elaborate selection system itself, but also the entire infrastructure it
is based on, which ensures constant monitoring and adaptation of its parameters.
This includes a comprehensive and constantly improving data infrastructure,
coupled with the capacity to analyse such data, and subsequent swift policy reaction
to new evidence. It also builds on extensive marketing and recruitment efforts by
the Canadian missions overseas and a welcoming host society, which considers
immigration as part of its national heritage. A broad range of settlement services
for labour migrants and their family, both pre- and post-arrival, completes the
system.

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 SUMMARY OF MAIN POLICY RECOMMENDATIONS  27

Summary of main policy recommendations

Further strengthen the consistency and selection of permanent

labour migration
 Align the pool entry requirements with the core selection criteria in Express
Entry. Raise the minimum entry requirement for the first official language
to CLB 7, as is currently the case for Federal Skilled Workers. Likewise,
introduce a minimum qualification requirement for entry into the Express
Entry pool.
 With such common minimum requirements, consider to merge the Canadian
Experience Class with the Federal Skilled Workers Program into a single
entry pathway.
 Abolish the Federal Skilled Trades Program.
 Consider awarding points for Canadian work experience (in the core factor)
based on the relative wage of the last Canadian job instead of on the duration
of the work experience and the occupational classification.
 In the skill transferability factor, award the maximum interaction points for
Canadian work experience after three years only, thereby aligning it with the
period for maximum points in foreign work experience.
 Avoid frequent changes in the allocation of bonus points and be aware that
these can drastically alter the composition of candidates selected.
 For migrants intending to work in regulated occupations, enhance
information on the process.
 Enable and provide incentives for applicants intending to work in regulated
professions to initiate the licensing process before landing in Canada,
including by the introduction of a specific visa for foreign credential
recognition.
 Continue to promote standardisation and harmonisation of foreign credential
recognition and systematically collect and share data on foreign credentials
recognition between the different stakeholders and federal and
provincial/territorial jurisdictions involved. Require licensing bodies to take
the initial qualification assessment for migration as a starting point in the
licensing procedure.
 Consider awarding full skills transferability points to any candidate having
a licence in a regulated profession in their intended province of landing.

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 Monitor the occupations immigrants actually take up in addition to the

occupation they intend to work in, to be able to identify and address possibly
discrepancies, notably regarding over-qualification of labour migrants.
 Consider abolishing the labour market impact assessment (LMIA) for
permanent migration and replacing it with integrity checks, or provide for a
differentiated points scale with and without LMIA.
 Further investigate whether the separate points’ calculation for migrants
with partners deters such migrants from bringing their family along;
consider corrective action if this were the case.
Better target the management of temporary labour migration
 Consider to provide facilitations in the LMIA process for the renewal of
temporary permits, notably for high-wage temporary foreign workers.
 Consider introducing a specific trusted employer scheme for those
companies making heavy use of the Temporary Foreign Worker Program,
building on the experiences of the Global Skills Strategy.
 Explore linking temporary work visas with specific occupations and
provinces rather than employers.
 Consider requiring a longer work period in the profession in Canada before
granting caregivers access to permanent residence.
 Monitor the labour market impact of temporary migration, especially under
the International Mobility Program.
Improve coherence in the provincial/territorial elements of
migration management
 Base future growth of PNP primarily on Express Entry, ensuring standard
processing times and common educational and language minimum
standards.
 Continue to monitor outcomes of PT-selected permanent residents.
 Enhance efforts to support settlement outside major cities, building on the
experience of the rural and Atlantic pilots.
 Monitor the outcomes of new pilot programmes designed to settle migrants
in Atlantic Provinces and rural areas within the PTs.
 Consider introducing regional temporary labour migration pilot
programmes.

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 1. CONTEXT FOR LABOUR MIGRATION TO CANADA  29

Chapter 1. Context for labour migration to Canada

This chapter outlines the context for labour migration to Canada. It provides an
overview of labour migration in international comparison, the current domestic
labour market situation and demographic outlook and discusses the historical
evolution of the Canadian labour migration system. Partly as a result of the longest-
standing and largest skilled migration programme in the OECD, Canada has the
highest-educated immigrant population in the OECD. Overall labour market
conditions are favourable and the impact of demographic change is less severely
felt than elsewhere.

The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The
use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli
settlements in the West Bank under the terms of international law.

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30  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

Introduction
Successful management of labour migration is a longstanding political priority in
Canada. As a settlement country, along with the United States, New Zealand and
Australia, immigration has played an important role in Canada’s nation-building
and national heritage. Largely as a result of long-established labour migration, more
than one in five people in Canada (about 22%) is foreign-born, one of the highest
shares in the OECD. With an annual intake of about 0.8% of its national population
over the past decade, and with expected intake for 2019-21 nearing 1% of national
population, Canada also receives higher shares of immigrants than most other
countries. Indeed, in a context of sparse population density and an ageing native-
born society, immigration – and in particular labour migration – also plays an
important demographic role.
Canada is widely perceived as a role model for successful migration management.
Indeed, integration outcomes of immigrants tend to be better than in most other
OECD countries (OECD/EU, 2018[1]). This is in part due to the large share of labour
migrants who, selected to succeed in the labour market, have higher skill levels and
earn more than other immigrants upon arrival. Indeed, a few years after arrival,
these labour migrants start surpassing the population average. In 2015/16, labour
migrants’ (economic principal applicants)1 earnings five years after arrival were
112% the Canadian average.
Canada is also highly reactive to new developments and changes in the policy
governing migration are therefore frequent. A seminal recent innovation has been
the adoption, in 2015, of a dynamic two-step migration Expression of Interest
system called “Express Entry”. The new system selects eligible candidates from a
pool based on a comprehensive ranking system, with those with the highest scores
being invited to apply.
A key feature of the Canadian migration system – which distinguishes it notably
from systems in Europe – is the clear separation between temporary and permanent
migration. Permanent economic immigrants acquire the right to permanent
residence directly upon arrival2. Since the first agricultural programme for
temporary workers started over 50 years ago, temporary migration has also been an
important complement to the permanent labour migration system. Today,
temporary migrants with work rights arrive in Canada through a number of different
pathways, such as temporary workers, international students or youth exchange
programmes, where each pathway has specific work provisions.
Canada is also one of the most attractive destination countries for immigration.
According to the 2015-17 Gallup World Poll on migration, 15% of the world’s
population stated having a desire to move abroad, and 6% of these potential
migrants – an estimated 47 million adults – refer to Canada as their top choice of
destination. Indeed, Canada ranks second only to the United States, in this poll.
As a federal country with significant economic and labour market disparities and
differing population dynamics across provinces and territories, there are significant
regional considerations to take into account in labour migration management.

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Accordingly, the role of regional selection has been strengthened over the past two
decades.
Against this backdrop, this review3 is structured as follows: The first Chapter
presents the context for labour migration to Canada. Starting with an outline of
economic and demographic conditions, it then presents an overview of the history
of labour migration to Canada and of the current labour migration channels – both
permanent and temporary – as well as the main stakeholders for labour migration
management. Chapter 2 then analyses the management of permanent labour
migration, in particular the functioning of the new Express Entry (EE) system.
Chapter 3 discusses temporary migration, including both temporary migrants
coming for work and those coming for other purposes. The final Chapter 4 analyses
the role of the provinces and regions in labour migration management, focusing on
the outcomes and settlement patterns of provincially selected immigrants.

Overview of labour migration flows and the economic and demographic

context
Permanent labour migration flows are high in international comparison,
and Canada’s immigrant population is exceptionally qualified
The annual number of permanent residents admitted to Canada over the last decade
has been relatively stable at approximately 0.8% of the population and the plan is
to gradually increase this share to 1%. This is one of the largest shares among
OECD countries. Within this inflow, about 30% is directly managed labour
migration – again one of the highest shares in the OECD, after Japan. As a result,
Canada has the largest managed permanent labour migration programme in the
OECD and relative to population, only Australia and New Zealand have larger
inflows (Figure 1.1).

Figure 1.1. Permanent labour immigration in selected OECD countries, 2017

Total numbers (left) and per thousand of the population (right)

Labour immigrants Relative to population

90 3.00
80
Labour immigrants in 1 000

2.50
per 1 000 of population

70
60 2.00
50
1.50
40
30 1.00
20
0.50
10
0 -

Source: OECD Secretariat calculations based on OECD International Migration Database

(https://stats.oecd.org/Index.aspx?DataSetCode=MIG) and UN population data.

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32  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

Box 1.1. Integration of immigrants and their children in Canada

In international comparison, immigrants in Canada are well integrated. They boast
good labour market outcomes and high levels of social inclusion. This is partly a
consequence of the large share of highly educated labour immigrants and their
families. Immigrants are less likely to experience discrimination or feel
discriminated against than in most other OECD countries and this sentiment has
declined in Canada among immigrants over the last decade. Immigrants also report
very high levels of life satisfaction and over 90% feel that they belong to Canada.
In addition, immigrants report the best health status OECD-wide (OECD/EU,
2018[1]).
Landed permanent immigrants who were physically present in Canada 1 095 days
(three years) out of five years before the date of submission of a citizenship
application can become a Canadian citizen – and many chose to do so. The country
has one of the highest rates of citizens among settled immigrants OECD-wide. Over
90% of immigrants residing for over ten years have become Canadians. This share
is 27 percentage points higher than in the OECD, and the highest share among other
settlement countries and longstanding destinations.

Figure 1.2. Acquisition of nationality among immigrants

Percentages of host-country nationals among settled immigrants, aged 15 and above, 2017

100
90
80
70
60
50
40
30
20
10
0

Source: OECD/EU (2018[1]).

The outcomes of native-born children of immigrants in Canada even surpass those

of their parents. Linked with the overall high education levels of their parents,
immigrant offspring in Canada tend to have better outcomes at school and similar
outcomes in the labour market compared with their peers with no migrant
background – in stark contrast to most other OECD and EU countries. In literacy
scores, native-born children of immigrants not only outperform their peers with
native-born parents but have the highest mean PISA reading scores among 15-year-
old pupils OECD-wide.

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Consequently, of the over 321 000 permanent residents arriving in Canada in 2018,
less than a third (96 000) were directly selected by federal or provincial
governments as economic principal applicants. Spouses and dependants of
economic immigrants and immigrants from the family and humanitarian classes
also have an impact on the Canadian labour market. Indeed, both accompanying
family of labour migrants and family migrants are indirectly selected, because of
the tendency of spouses and family members to have a similar socio-economic
background (OECD, 2017[2]). As a result of several decades of attracting skilled
migrants and a large share of economic immigrants relative to other groups,
Canada’s foreign-born population is the highest educated in the OECD. A full 60%
of the foreign-born are tertiary educated (Figure 1.3), which also impacts on good
overall integration outcomes (Box 1.1). What is more, under the new Express Entry
system since 2015, spouses can influence the points score, and hence the selection
of labour migrants, albeit only to a fairly modest degree.

Figure 1.3. Percentage of tertiary-educated native- and foreign-born

Percentages of 15- to 64 year-olds, 2017

Foreign-born Native-born
70
60
50
40
30
20
10
0

Source: OECD and EU (2018[1]).

Immigrants accounted for 24% of the Canadian labour force in 2016. A recent
report by the Conference Board of Canada suggests that between 2018 and 2040,
the expected 11.8 million school leavers who enter the labour market will be
significantly below about 13.4 million workers exiting the labour force.
Immigration will thus remain a key contribution, accounting for all of Canada’s net
labour force growth (3.7 million workers) (The Conference Board of Canada,
2019[3]).
In all OECD countries, labour market outcomes of immigrants typically improve
with duration of stay, although this is less evident for labour migrants due to the
fact that they are often admitted with a job offer and the employment rate of this
group can only decrease over time (Dumont et al., 2016[4]). In Canada, where a
significant share of migration is supply-driven, the improvement of labour market

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outcomes over time holds also for labour migrants. In terms of earnings, these
migrants exceed the Canadian average five years after landing. Human capital – in
particular education – is the best predictor of long-term economic success in
Canada. In the short run, individuals with prior links to the Canadian labour market
or ties to a specific region4 in particular have higher earnings until the effect of their
pre-integration levels off and, once again, education stands out as the main predictor
of economic success (Warman, Webb and Worswick, 2019[5]; Bonikowska, Hou
and Picot, 2015[6]).5

Current labour market conditions are favourable, and long-term

projections predict labour shortages in high-skilled occupations
Current labour market and economic conditions for immigration are favourable in
Canada. Over the past decade, Canada has had a relatively stable employment rate,
above the OECD average. In Q4-2018, 74% of working age population were
employed, compared to 68.5% in the OECD as a whole (OECD, 2019[7]). In
Q4-2018, Canadian unemployment rates stood at 5.6%, slightly above the OECD
average of 5.2%, but one of the lowest rates in Canada over the past 40 years.
The country’s recession at the end of 2008, following the outbreak of the global
financial crisis, was more muted than in the rest of the OECD. Since 2009, growth
has been steady and above the OECD average until 2014. At that time, a contraction
in the oil and gas sector in the wake of the collapse in global energy prices decreased
Canadian energy exports as well as business investment. Canada has recovered
since and a real GDP growth of 2.2% in 2019 is projected (OECD, 2018[8]).
Skill and labour shortages are always hard to identify and forecast. The main source
of information in this regard is the Canadian Occupational Projection System
(COPS), a biannual analysis from Employment and Social Development Canada
(ESDC). It evaluates supply and demand of 292 occupational groupings by broad
skill level and forecast the evolution of the Canadian labour market.6 Most recent
estimations draw a rather balanced picture in terms of labour supply and demand
by aggregate skill level. Overall COPS’s projections for 2017-26 suggest
6.35 million job openings will be met by 6.3 million projected job seekers,
including projected levels of immigration (ESDC, 2017[9]).
Nevertheless, in certain occupations within skill levels, the COPS predicts
imbalances. It forecasts shortages of labour in high-skilled occupations (Skill Level
A) that require a college or a university education. These are concentrated in the
health sector and in occupational groupings related to applied sciences. Skill Level
A occupations likely to face shortages in the coming decade accounted for 5.9% of
total employment in 2016. In contrast, occupations requiring lower skill levels
which are likely to face shortages accounted for less than 2% of total employment
in 2016. The projections also predict surplus in certain occupations, but these are
more evenly distributed among high and low-skilled occupations. They include
clerical and administrative occupations that are expected to be (partly) replaced by
new technologies as well as jobs in the processing and manufacturing industries
(ESDC, 2017[9]). The forecast predicts that about 76% of the projected employment

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growth over the next ten years is expected to be in high-skill occupations as the
Canadian economy is becoming more and more knowledge-intensive, automatised
and with stronger health care needs. However, these COPS projections are
aggregate and nation-wide estimations. As such, they capture neither regional
differences nor imbalances within occupational groups. As shortages are likely to
be confined to certain specific professions and widespread only in particular
regions, this limits their overall practicality.
To provide better data on regional labour shortages, Canada launched in 2015 the
Job Vacancy and Wage Survey (JVWS), administered by Statistics Canada. The
JVWS documents job vacancies, job vacancy rates and average offered hourly
wages7. It provides a regional quarterly updated overview of labour demand. In the
first quarter of 2018, the job vacancy rate reached 2.9% across Canada, which is the
sixth consecutive quarter with a year-over-year increase in the number of job
vacancies. Rates varied from Lower Mainland-Southwest in British Columbia
(4.4%) to South Coast-Burin Peninsula and Notre Dame-Central Bonavista Bay in
Newfoundland and Labrador (1.2%) (Statistics Canada, 2018[10]).
The largest number of job vacancies were in accommodation and food services,
followed by health care and social assistance. The highest vacancy rate was reported
in the agriculture, forestry, fishing and hunting sector (6.9%) (Statistics Canada,
2018[11]).
The fact that COPS does not predict shortages in lower skilled occupations is partly
at odds with other perceptions of the Canadian labour market. According to the
latest Talent Shortage Survey of the Manpower Group, 41% of Canadian employers
report difficulties filling open jobs. This is the most pronounced talent shortage in
Canada since 2006. However, Canada is facing fewer difficulties than most other
OECD countries (Figure 1.4). Talent shortage is most severe for large companies,
with 58% of employers employing over 250 employees saying they face skill
shortages. According to the survey, the most difficulties in filling positions in
Canada are in the sector of skilled trades, sales representatives, drivers, technicians,
and engineers – i.e. in the mid-skilled segment (ManpowerGroup, 2018[12]).

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Figure 1.4. Talent shortage in international comparison, 2018

100
90
80
70
60
50
40
30
20
10
0

Source: ManpowerGroup (2018[12]).

Another source of information on labour market conditions is the Bank of Canada

Business Outlook Survey, which regularly asks employers if labour shortages
restrict their ability to meet demands. In particular, it surveys if companies
experience a more, less or similar intense shortage of labour compared to 12 months
ago. In the second quarter of 2018, the number of firms reporting that labour
shortages restrict their ability to meet demand rose to a level just above the historical
average. Businesses in British Columbia and Central Canada report more labour
shortages than other regions. For the fifth consecutive quarter, firms cited that
labour shortages are more intense than they were 12 months ago (Bank of Canada,
2018[13]).

The Canadian population is highly concentrated, and growth is driven by

migration while the native-born population is ageing
With a current population of 37 million inhabitants spread out over 10 million km2,
Canada is the least densely populated OECD country following Australia. In
addition, the population is highly concentrated in certain regions and cities. In 2016,
over 38% of Canada’s population lived in Ontario, 23% in Quebec followed by
13% in British Columbia and 12% in Alberta. In contrast, fewer than one in eight
individuals lived in the remainder of the country. What is more, a full 35% of the
population are in the three main cities of Toronto, Montréal and Vancouver.
Housing affordability in these regions and cities has worsened steadily since 2009,
and Canadians spend more of their disposable income on housing than citizens in
most OECD countries do (OECD, 2018[14]).
Immigrants tend to concentrate even more than native-born Canadians in the major
metropolitan areas, with almost 60% of labour migrants who arrived over the
decade 2006-16 being settled in these three cities.
The distribution of labour migrants landing in Canada differs greatly, not only in
absolute but also in relative terms (Figure 1.5 and Figure 1.6). In 2017, in absolute
terms most economic immigrants landed in Ontario and Quebec. However, relative

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 1. CONTEXT FOR LABOUR MIGRATION TO CANADA  37

to population, Prince Edward Island welcomed the highest share of economic

immigrants, representing 1.5% of its 2016 population, followed by Saskatchewan
(1.1%) and Manitoba (0.8%).8

Figure 1.5. Permanent landed economic immigrants, 2017

Note: Economic immigrants landed in 2017, totals.

Source: IRCC Admissions of Permanent Residents by Intended Destination and Immigration Category.

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38  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

Figure 1.6. Permanent landed economic immigrants relative to population, 2017

Note: Economic immigrants landed in 2017 as a percentage of the 2016 population.

Source: Immigrants: IRCC Admissions of Permanent Residents by Intended Destination and
Immigration Category, population: census 2016.

According to its latest census of 2016, Canada had an average annual population
growth rate of 1% between 2011 and 2016, the highest population growth rate
among all G7 countries, with immigration accounting for about two-thirds of
overall population growth from 2011 to 2016, while fertility remains low at a
current rate of 1.6 births per woman (Statistics Canada, 2017[15]). Canada’s net
migration rate for 2015 to 2020 is projected to be six persons per 1 000 inhabitants,
a number only surpassed in the OECD by Australia with 6.9 per 1 000 inhabitants
(United Nations, 2017[16]).
Canada’s population, like that of many other OECD countries, is aging. The share
of individuals 65 years and above increased from 13% to 17% within the last
15 years. The number of individuals aged 65 and over per 100 people of working
age (20-64) is expected to climb from 26% in 2015 to almost 48% in 2050, although
it is expected to remain well below that of many other OECD countries (Figure 1.7).

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Figure 1.7. Old-age dependency ratio

Ratio of population aged 65+ per 100 population 20-64.
2015 2050
%
90
80
70
60
50
40
30
20
10
0

Source: United Nations (2017[16]).

There are also important regional variations in population aging, with the Atlantic
Provinces (Newfoundland & Labrador, Prince Edward Island, Nova Scotia and
New Brunswick) being most affected. These provinces had the oldest population
structure with close to 20% of the population being 65 years and older. In contrast,
a rather young population characterises the sparely populated territories. In Yukon,
the Northwest Territories, and Nunavut, only about 12%, 8% and 4% are aged
65 years and older (Statistics Canada, 2017[17]).

Entries and exits from the labour market are broadly balanced
Largely because of labour immigration, demographic dynamics have not yet
resulted in a decline of total workforce, and the difference between age-related exits
and entries to the labour market is only weakly negative (-5%). Here, Canada’s
broadly balanced position contrasts with most other OECD countries (Figure 1.8).

Figure 1.8. Difference between age-related entries and exits from the working-age
population in OECD countries, based on the 2015 population
86% 131% 201%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%

Source: OECD Secretariat calculations based on UN population data.

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40  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

Immigration will, however, be crucial to sustaining a growth in the working-age

population over the coming years (The Conference Board of Canada, 2019[3]). The
old-age dependency ratio and its projections place Canada at an average position
within the OECD. In 2015, 100 Canadians between 15 and 64 years of age
supported 24 individuals of 65 years and above. This number will rise only
modestly to 28 persons by 2020 and 33 by 2025 (United Nations, 2017[16]).
However, as immigrants age too, the capacity of immigration to mitigate the old-
age dependency ratio in the long run are modest (OECD, 2018[8]).

Evolution of Canadian immigration policy

Settlement and nation building
The Indigenous people – the First Nations, Inuit and Metis – were the first
inhabitants of the land forming today’s Canada. Ever since the first arrival of settlers
in the 16th century, immigration has been one of the defining features of Canadian
nationhood. The country was officially formed with the passage of the Constitution
Act in 18679 and section 95 of the same outlined jurisdiction of immigration. It gave
shared responsibility for immigration to both federal and provincial governments,
with federal law being paramount in the case of conflict. Shortly thereafter, in 1869,
Canada passed its first Immigration Act, which established immigration offices
across Canada and Great Britain. Active recruitment from abroad has been a key
component of Canadian policy ever since. With a population of less than four
million at the time, authorities considered immigration crucial for the nation’s
territorial and economic expansion. While the Act only explicitly excluded the “ill,
disabled and poor” and did not exclude any specific nationalities, in practice, most
migrants came from Great Britain and the United States (Li, 2003[18]).
Immigration policy was one of the three key pillars of early nation-building,
especially to settle famers in the west, along with tariff protection for the
manufacturing sector in the east and the development of transcontinental railways
to link domestic goods and people across the country. Between 1867 and 1895,
around 1.5 million, mostly European, immigrants arrived in Canada. They
predominantly settled as farmers in the western provinces but many also joined the
manufacturing labour force in the east. Immigration policy in 1887 was part of the
Department of Agriculture, and subsequent changes of responsible ministries
reflect priorities of immigration policy at a given time (see Table 1.1 and Alboim
and Cohl (2012[19])).

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Table 1.1. Departments in charge of Canadian immigration policy, 1887 to present

Department Year
Department of Agriculture 1887
Department of the Interior 1893
Department of Immigration and Colonization 1917
Department of Mines and Resources 1936
Department of Citizenship and Immigration 1950
Department of Manpower and Immigration 1966
Department of Employment and Immigration 1977
Department of Multiculturalism and Citizenship 1991
Citizenship and Immigration Canada (CIC) 1994
Immigration, Refugees and Citizenship Canada (IRCC) 2015

Note: In 2015, CIC rebranded to IRCC but no department change took place.
Source: Information from IRCC.

At the beginning of the 1880s, large numbers of Chinese labourers came to Canada
to work on the western section of the Canadian Pacific Railway. The province of
British Columbia passed several laws to restrict their immigration, and the Chinese
Immigration Act of 1885 imposed a head tax of CAD 50 on every Chinese person
seeking to enter, which was increased in subsequent years. In 1923, the Chinese
Immigration Act virtually restricted all Chinese immigration to Canada for the next
decades (Morton, 1974[20]). Disputes between the province of British Columbia and
the federal government over that matter also exemplify the latter’s determination to
keep countywide control over immigration policy as an important component of
nation-building and economic development (Li, 2012[21]).

Selection based on ethnicity and country of origin

At the turn of the century, the number of immigrants coming to Canada increased
strongly. Between 1896 and 1914, three million migrants arrived on its shores. In
addition to the government’s policy of active recruitment and settlement, a
combination of events contributed to this increase. New farming methods brought
previously unusable land into cultivation and rising commodity prices combined
with cheaper transportation costs made farming in Canada a more profitable and
attractive proposition (Li, 2003[18]). As a reaction to this increase, a new
Immigration Act in 1906 and another Act in 1910 assigned the government
extended powers to make arbitrary judgements on admission, and to identify
categories of prohibited immigrants. Following World War I, the Immigration Act
was revised in 1919 and implemented an even more restrictive immigration policy
allowing restrictions formally based on migrants’ race, nationality, occupation and
class. The resulting introduced feature of preferred and non-preferred origin
countries10 remained central to immigrant selection until the 1960s.
At the time, the government had the power to limit the number of immigrants
admitted in a given period. This empowered the executive branch (in form of the
Cabinet) to make regulations without having to pass amendments through Canada’s
legislative bodies (Boyd and Alboim, 2012[22]). It thus had great flexibility to

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control immigration flows for conditions “temporarily existing in Canada” and

established the Employment Service Council to manage immigration flows based
on domestic unemployment rates (Green and Green, 1999[23]). During the period,
the government – for the first – time regulated immigration based on the economy’s
short-run absorptive capacity, an idea reoccurring until the 1990s.
Much of Canadian immigration policy after World War II aimed at hosting refugees
from Europe. At the same time, the policy remained restrictive with respect to
immigration from Asia and other non-European (and non-American) origin
countries. These elements formed the blueprint for the immigration policy at the
time and were formalised in the new Immigration Act in 1952. This Act did not
represent a significant departure from prior legislation and continued the
discrimination against non-American and non-European immigrants.

Figure 1.9. Total and relative annual permanent migration inflows, 1860 to 2020

Number of immigrants % Share of population

450000 6
400000
5

% Share of population
350000
Number of immigrants

300000 4
250000
3
200000
150000 2
100000
1
50000
0 0

Note: Data for 2018-20 based on 2018 to 2020 Immigration Levels Plan, previous data actual
admissions.
Source: OECD Secretariat analysis based on data from IRCC.

The beginning of the point-based system

Only about ten years later, this framework had become unsustainable. The civil
rights movement in the United States and the important role Canada had played in
drafting the Universal Declaration of Human Rights, meant a selection system
based on nationality and ethnicity was no longer acceptable by the 1960s. In
addition, declining numbers of applicants from Europe demanded a policy change.
In 1962, the government issued new regulations removing country of origin as a
selection criterion. However, as selection standards were not well specified,
immigration officers had wide discretion when assessing potential migrants. This
carried the risk of continued de facto racial bias in spite of the new regulations
(Green and Green, 1999[23]). A report in 1966 suggested restructuring immigration
policies to avoid a large influx of sponsored but unskilled labourers. As a solution

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to this problem, another round of regulations in 196711 introduced the world’s first
points system for immigrant selection.12
The new system offered a more transparent way to evaluate the skills of a potential
migrant by assigning points to individual characteristics such as education and
skills, age or knowledge of official languages. As expected, the new selection
scheme resulted in an increase of non-European immigrants and a diversification of
countries of origin over the following decades. Before the 1960s, one in four
immigrants to Canada came from the United Kingdom and in total over 90% from
Europe. By contrast, already by the first half of the 1990s, about one in two
permanent immigrants to Canada was from the Asia and Pacific region while the
Americas, Europe, and Africa / Middle East each contributed a similar share of
about one in six immigrants. This is still the region of origin of most newly admitted
permanent economic immigrants. The top three countries – India, the Philippines
and China – accounted for more than half (56%) of new permanent admissions in
the economic classes of 2017.
Changes in the main source countries of immigrants have transformed the overall
portrait of Canada’s foreign-born population. In 1871, in the first census held after
Confederation, the foreign-born population was mainly from the British Isles
(84%). In 2016, almost half (48%) of the foreign-born population was born in Asia
(including the Middle East), while a lower proportion (28%) was born in Europe.
African-born immigrants represented 8.5% of the foreign-born population (IRCC,
2018[24]).

Occupational targeting and temporary labour demands

The primary focus of adopting the points system was to remove selection based on
origin and increase transparency and consistency. In addition, those who believed
immigration policy should be directed more toward addressing needs of the labour
market welcomed the new regulations (Hawkins, 1988[25]).
Occupational targeting had been part of previous immigration policy but it had
always been a secondary concern to the primary demographic goals of nation-
building and overall population growth. Historically, there was no tension between
these two goals – labour force and population growth – as the labour required was
generally unskilled. However, once the government aimed to move the economy
towards more skill-intense manufacturing and services, immigrants were expected
to fill specific skill demands (Boyd and Vickers, 2000[26]). The government adjusted
points given to applicants based on quarterly-reviewed “occupational demand”
resulting in overall fewer numbers of immigrants to grow the population. Critics
voiced concerns about the effectiveness of such micro-managing of permanent-type
immigration (Green and Green, 1999[23]) but an increasing number of skilled
workers nevertheless earned enough points without the aid of “occupational
demand” points.
The demographic and labour market goals for immigration policy collided in the
1970s and early 1980s, when the economy went through a series of turbulent

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44  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

business cycles. Immigration flows expanded and contracted in tune with the
business cycle.
Around this time, the first temporary labour immigration programmes started.
Already in 1966, the Seasonal Agricultural Worker Program (SAWP) began with
the aim of filling immediate – but temporary – labour market needs in the farming
industry. It enabled the employment of seasonal workers from Jamaica in Ontario.
In the following years, similar programmes were established with ten other
Caribbean countries, and most noteworthy with Mexico in 1974. The employer-
demand driven programme continues to operate today. Bilateral agreements, which
protect workers and ensure they return to their country of origin after the maximum
stay of eight months, regulate the programme. Nowadays, the SAWP is one
category under the Temporary Foreign Worker Program (TFWP). In contrast to
these efforts of attracting low-skilled labour, the Department of Manpower and
Immigration started a programme to attract high-skilled temporary workers in 1973.
The Non-Immigrant Employment Authorization Program (NIEAP) targeted
specific groups of people with specialised skills, including academics, business
executives and engineers (Nakache and Kinoshita, 2010[27]). Today, most of these
high-skilled temporary labour immigrants are part of the International Mobility
Program (IMP), who do not need to pass a labour market impact assessment (see
Chapter 3). Migrant workers admitted under the TFWP and IMP, along with
international students, who are allowed to work, constitute the temporary foreign
labour force in Canada at present. The introduction of these programmes in the
1960s and 70s constituted a major shift in migration management away from the
dual goal of workforce- and nation-building towards using immigration for
obtaining temporary, flexible labour.

Regionalisation and demographic concerns

After extensive consultation with a joint committee of the Senate and the House of
Commons and hearings across the country, Canada passed a new Immigration Act
in 1976, which came into effect in 1978. The new Act made changes which had a
lasting influence on future immigration policy. Among the – for the first time
explicitly stated – policy objectives were demographic goals and the importance of
family reunion, ensuring non-discriminatory selection, refugee protection, and
fostering the development of a strong and viable economy with prosperity for all
regions in Canada (Green and Green, 1999[23]). The Act defined three immigration
streams which continue to be the main categories of immigration to Canada today:
economic, family and refugee.13
The Act further enabled the federal government to establish agreements with the
provinces and territories to govern permanent immigration (see Box 1.2). As of
2019, 11 provinces and territories, all save for Quebec and Nunavut, have signed
agreements with the federal government to select (“nominate”) economic
immigrants to their province/territory based on regional labour market needs and
preferences. Today, the programmes under these agreements comprise the
Provincial Nominee Program, a key feature of Canadian immigration policy.

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The Provincial Nominee Program enables provinces and territories to select a share
of immigrants based on their own labour market needs and regional priorities.
Within the federal jurisdiction, the PNP and the federal programmes complement
each other in terms of geographic distribution. Indeed, whereas migration through
the federal programmes has been largely oriented towards Ontario and in particular
Toronto as well as the metropolitan area of Vancouver, and Quebec-selected
immigrants mostly settle in and around Montreal, provincial nominees (PNs) have
landed in other parts of the country and also outside of the main metropolitan areas.
Chapter 4 of this review discusses the regional elements in Canadian labour
migration management in more detail.

Figure 1.10. Labour immigrants by province and migration programme, 2017

Provincial nominees Federal labour immigrants
35000
30000
25000
20000
15000
10000
5000
0

Source: IRCC, Permanent Residents, July 31, 2018 Data. Data request tracking number: RE-
18-0424.

Box 1.2. Regional governance of immigration in Canada and the case of Quebec

For the first 100 years following 1867, Canada’s immigration policy was largely
the domain of the federal government. Social changes in the 1960s and 1970s
challenged this federal monopoly. A movement in Quebec at the time that called
for more autonomy encouraged the provincial government to become more
involved in a variety of policy areas, including immigration. Previously high
fertility rates in Quebec had dropped dramatically after World War II, and there
was a perception that federal immigration policy was favouring Anglophone
migration to the province. These trends encouraged policy makers to seek more
delegated authority from the federal government. Quebec opened its own
Ministry of Immigration in 1968 and signed a series of first agreements with the
federal government on immigration policy. These agreements were modest in
scope at the outset but progressively gave Quebec more opportunity to influence
immigration to its province.

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To facilitate further agreements of this kind with other regions, the Immigration
Act 1976 gave the Minister of Immigration the power to “enter into an agreement
with any province […] for the purpose of facilitating the formulation, co-
ordination and implementation of immigration policies and programs”. As a
result, other provinces signed a number of agreements with the federal
government, but none that enabled provincial governments to actually select
immigrants (Seidle, 2010[28]). This changed in 1991 with the signing of the
Canada-Quebec Accord, which gave Quebec the ability to select economic
migrants and refugees destined for the province.
This agreement set the stage for other agreements with other provinces and
territories signed in the 1990s and 2000s. Indeed, observing the developments in
Quebec, other provinces began seeking to negotiate their own immigration
agreements in the 1990s. Implications for immigration policies included a risk
of programme duplication and coordination concerns. This resulted in the
creation of the Provincial Nominee (PN) Class. Starting with a bilateral PN-
agreement between the federal government and Manitoba in 1996, it extended to
other provinces and territories in subsequent years.
The Canada-Quebec Accord, which still governs immigration to Quebec today,
sought to address linguistic, historical and political concerns, in particular the
preservation of Quebec’s demographic weight within Canada and the integration
of immigrants in Quebec in a manner that respects the distinct identity of the
province.
When it comes to division of responsibilities for immigration, the Accord gives
Quebec sole responsibility for the selection of all immigrants destined for the
province, with the exception of the family class and persons determined to be
refugees in Canada.
Economic migrants are selected using provincial selection criteria and a points
system, which is similar to the one of the federal government but with a larger
emphasis on French language proficiency. The Express Entry system does not
manage economic immigration to Quebec. The province has – since 2018 – its
own expression of interest system. The federal government establishes national
immigration levels in consultation with Quebec and other provinces. The Accord
allows Quebec to receive the percentage of total admissions to Canada roughly
equal to its share of the Canadian population (currently 23%), with the right to
exceed this total by 5%. In recent years, Quebec’s skilled worker programmes
accounted for about 20% of all economic immigrants to Canada. Quebec tables
a multi-years levels plan every third year and confirms its levels plan on an
annual basis.
The federal government retains control over assessing migrants’ admissibility in
terms of their health and possible risk to security. It can reject applicants in the
final stage if they fail to meet national standards along those lines. Regarding
resettled refugees, the federal government builds a pool of refugees it will receive
based on its commitments and annual refugee target level. In keeping with its

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responsibility to resettle a share of overall refugees each year, which is set out in
the Accord, Quebec then selects those refugees who it thinks will best integrate
in the province. Migration management for family reunification purposes
remains with the federal government, with Quebec being responsible for
assessing the sponsors’ financial capability (the undertaking). Quebec has
responsibility for welcoming migrants and providing settlement support funded
through a formula specific in the agreement.
While this review focuses on recruiting immigrant workers to the rest of Canada,
the Canadian regions in general and Quebec in particular play a unique role in
immigration management. Chapter 4 provides a more in-depth analysis of past
developments and current policies. In this review, total numbers for Canada
include Quebec, unless stated otherwise.

Introduction of transition pathways for temporary migrants and increase

in total intake
Historically, Canada had no formal pathways from temporary to permanent
residence. Instead, the system required most temporary residents to return home
before submitting a permanent residence application. This was typically via the
main entry class at the time: skilled worker. This changed with the introduction of
the live-in domestic workers programme in 1981, which evolved into the Live-in
Caregiver Program (LCP). This programme not only allowed for onshore transition
but also had a clear pathway for such a transition. Initially created to facilitate entry
and eventual permanent residence for workers who provide in-home assistance to
the elderly, disabled, or young children, the programme offered since its inception
in 1992 an almost guaranteed pathway to permanent residence for temporary
foreign workers (TFWs) who complete two years (or 3 900 hours) of caregiving
work over a limited time period. The LCP was terminated in November 2014 and
replaced by two five-year pilots: the Caring for Children Class and the Caring for
People with High Medical Needs Class. These have now been terminated and two
new pilots, the Home Child Care Provider Pilot and the Home Support Worker Pilot
were launched in June 2019 (see Chapter 3).
Around the same time, Canada renewed its interest in the demographic function of
immigration. In 1985, a special report to parliament projected that Canada’s
population would begin to decline by the end of the 20th century due to low fertility
rates (Canada, 1985[29]). The report recommended increasing the number of
economic immigrants but not at the expense of family or refugee classes. In
response, the government removed the requirement of prearranged employment for
economic migrants in January 1986, which had existed since 1982, and allowed
total inflows to rise considerably. Total intake grew thereafter from about
85 000 permanent migrants in 1985 to close to 100 000 in 1986, and over 150 000
in 1987 (Green and Green, 1999[23]). Increases in annual inflows began to level off
by 1992 (Figure 1.9). Since the year 2000, the annual permanent immigration intake
has been equivalent to about 0.7% to 0.8% of the Canadian population. The present
target of 330 800 new permanent immigrants for 2019 is not only a historic high,

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but also an increase of approximately 21% compared to the previous ten-year

average.

From demand to supply driven permanent labour migration policies

For decades, the government had tried to micro-manage immigration streams,
which expanded and contracted in tune with the business cycle. During the
recession in the early 1980s, 55% of Canada’s migrants entered via the family
stream and only 27% landed as economic immigrants. As the economy picked up
in the late 1980s, these figures reversed; the family stream accounted for only 32%
of migrants in 1988, while the economic stream made up 50% in that year.
In the 1990s, immigration policy began to move away from this demand-driven
approach, which used permanent immigration to fill rather short-term occupational
needs, in favour of a more long-term supply-driven policy. The new goal at the time
was to maintain Canada’s competitiveness and to build its domestic “knowledge
economy”. The changes increased the proportion of the economic stream, which
grew relative to family and refugee streams. From 1991 to 1993, the family and
economic classes accounted for an equal share of migrants (around 40%).
Afterwards, they diverged greatly, with the economic stream floating around 60%
and the family stream accounting for around 30% (Figure 1.11).14

Figure 1.11. Totals and shares of permanent immigrants by entry stream, 1980-2020

Family Economic Humanitarian Other

70% 350000

60% 300000

50% 250000

40% 200000

30% 150000

20% 100000

10% 50000

0% 0

Note: Data for 2018-20 based on 2018 to 2020 Immigration Levels Plan, previous data actual
admissions.
Source: OECD Secretariat calculations based on data from IRCC.

A new Immigration Act and application backlogs

At the end of the millennium, the 1976/1978 Immigration Act had been amended
over 30 times and lacked coherence and clarity. To address new challenges, gain
flexibility and short-term labour needed in specific regions, the Immigration and
Refugee Protection Act (IRPA) was enacted in 2002 and remains in force until
today.

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The IRPA replaced the previous skilled worker policy that had selected most of
Canada’s economic migrants with the Federal Skilled Worker Class (FSW). The
changes included a new points grid that further emphasised education, previous
work experience and language ability, and removed occupational points (Begin,
Goyette and Riddell, 2010[30]). This was a shift away from selection based on
specific job skills in favour of general human capital. As a result, the education
level of principal economic applicants rose in the following years. In contrast to
10% of immigrants holding university degrees in the 1980s, by 2005 around 45%
had university degrees. Between 2000 and 2007, 78% of principal applicants to the
FSW Class had a university qualification, as well as half of their spouses (Ferrer,
Picot and Riddell, 2012[31]).
While the selection of permanent economic immigrants at the time focused on high
levels of human capital, temporary labour migration policy took the opposite path.
In 2002, the Low-Skilled Pilot Project15 was enacted, to respond to employers’
demand for temporary low-skilled labour. The programme allowed employers to
hire temporary labourers for occupations requiring at most a high school diploma
or a maximum of two years of job-specific training. This corresponded to the
national occupation skill-level C and D. Permits were issued for up to 24 months,
with the potential for extensions, and employers were required to cover recruitment
and return airfare costs, ensure suitable accommodation and provide medical
coverage.16 After several reports and criticism from the Canadian that the
programme was being used to provide a cheap source of flexible labour rather than
its intended use of last resort, the Government of Canada introduced a
comprehensive overhaul of the Temporary Foreign Worker Program in 2014, aimed
in part at limiting access to the programme and tightening the labour market
assessment.
During the 2000s, the demand to immigrate to Canada in most permanent resident
programmes began to outstrip the Department’s ability to process applications and
admit applicants in a timely manner. As a result of the mismatch between interest
in immigrating to Canada and the number of admissions approved each year, a
backlog of untreated immigrant applications grew in Citizenship and Immigration
Canada (CIC), along with lengthening wait times for clients. At the root of this
problem was that following 2002, the new IRPA required CIC to process every
application to a final decision, even when enough applications had been received to
meet approved admissions each year. With respect to selecting skilled workers to
support economic goals, these conditions meant that applicants who passed the
threshold to apply would have applications processed, regardless whether they met
labour market needs. As wait times grew in key skilled worker programmes, the
immigration system was criticised for being unfair to clients and unresponsive to
labour market needs and unable to prioritise applications.

Ministerial Instructions and the introduction of Express Entry

To combat these developments, the Budget Implementation Act in 2008 amended
the IRPA in two important ways. First, the obligation to process all immigration
applications received by the Department was removed. Second, a new authority was

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created that enabled the Minister to better manage the processing of applications.
These so-called “Ministerial Instructions” (MIs) enabled the Minister to prioritise
applications, to cap application intake, or even halt the processing of applications
in certain categories (CIC, 2008[32]) as a means of prioritising goals and addressing
backlogs.
MIs are used to deal with diverse issues crosscutting permanent and temporary
migration policy and limited in legal force for certain periods of time. Section 14.1
of the IRPA allows the minister to issue MIs to create new classes of economic
programmes, for up to five years duration. As a result, the ministry started several
new classes or replaced earlier existing paths by issuing MIs. In some instances, the
ministry used MIs, issued under different authorities (discussed above), to issue
caps of application numbers or a total pause of new recipients to a particular class.
At other times, entry was limited to certain occupations or a condition of pre-
arranged employment required. The fifteenth set of MIs from January 2015 repealed
all processing eligibility criteria including the application caps and eligible
occupation lists for new applications. Since January 2015, application intake for
these three federal permanent economic classes is managed via a new system –
Express Entry – which is again primarily governed by Ministerial Instructions.
Express Entry (EE) is a two-step selection system for federal permanent economic
migration. Application classes include all federal programmes (see next section for
more detail on the different classes). In addition, some Provincial Nominees (PN),
who are nominated by the provincial/territorial government, are managed via the
system. In general, applicants must first pass core eligibility requirements of one of
the federal programmes to submit an Expression of Interest (EoI) and enter an
application pool. The system automatically ranks applications based on human
capital and other factors through a uniform points system: the Comprehensive
Ranking System (CRS). About every second week the ministry issues a MI, which
states the absolute number of individuals, not their individual’s points, to receive a
so-called Invitation to Apply (ITA) for permanent residence. Individuals in the
pool, starting from the highest-ranked candidates until the stated number of
intended ITAs is reached, receive an invitation to apply. Depending on the
composition of the pool (candidate’s CRS-score17) a minimum CRS-score is
published as well. This CRS-score denotes the minimum points needed to receive
an ITA in the given round. Applicants who decline an invitation to apply, or did not
receive one, due to their insufficient CRS-score in the given round, remain in the
pool for up to 12 months. Applicants who do not react to their invitation are
expelled from the pool. As the government defines the number of invitations it
issues and not the required CRS-score, the threshold is floating. Until the end of
July 2018, the ministry has used this mechanism 95 times, publishing Ministerial
Instructions, which state the number of ITA and the resulting minimum needed
CRS-scores. The Express Entry system is analysed in detail in Chapter 2 of this
review.

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The establishment of two major streams of temporary labour migration

Just like permanent labour immigration policy, temporary migration policy has
been subject to frequent changes in recent years. One of the main objectives and
challenges in managing temporary labour migration is to balance temporary needs
of employers while giving priority to Canadians and permanent residents.18 As
growing numbers of temporary labour migrants stayed in Canada for several years,
their integration also became a concern.
In 2014, the government restructured the numerous existing temporary labour
immigration programmes, dividing them into two streams: the Temporary Foreign
Worker Program (TFWP) and the International Mobility Program (IMP).
The difference between these two streams results from their core mandate. The
TFWP aims to fill temporary labour and skill shortages. In contrast, the IMP aims
at broader economic, cultural or other objectives for Canada, including international
exchange. Due to these different objectives, work permits under the TFWP require
a Labour Market Impact Assessment (LMIA) while work permits under the IMP
are exempt from this obligation.
An LMIA is a document from Employment and Social Development Canada
(ESDC)/Service Canada, which verifies an existing need for a temporary worker,
and that no Canadian is available to do the job.19 The employer has to apply for this
document and pay the related fee (CAD 1 000) to hire a temporary worker. The
LMIA is usually issued with reference to only one specific job and employer. In
contrast, an employer who hires a temporary migrant through the IMP only needs
to pay an employer compliance fee (CAD 230) and submit an offer of employment
form.20 A list with the LMIA exempted occupation codes is available online.21 The
various existing pathways and programmes for temporary foreign workers are
therefore part of the TFWP if they need an LMIA and part of the IMP if they are
exempt from this assessment.

Key actors in the management of labour migration to Canada

Immigration is a shared responsibility between the federal and provincial/territorial
governments. The main federal hub for most of this activity is Immigration,
Refugees, and Citizenship Canada (IRCC).22 In November 2015 the then newly
elected Canadian government rebranded the previous department “Citizenship and
Immigration Canada” (CIC) formed in 1994 and added the word ‘refugee’ to reflect
the commitment to humanitarian immigration to Canada.
IRCC has three core responsibilities: First to facilitate the entry of eligible visitors,
international students and temporary workers; second to select permanent
immigrants and refugees and manage their integration; and third, to facilitate the
international travel of Canadians by issuing passports and travel documents as well
as facilitation of permanent residents to become Canadian citizens. Regarding
labour immigration, IRCC is responsible for setting Canada’s permanent admission
policies and co-operates with provinces and territories that nominate permanent
candidates to take part in provincial programmes. IRCC is also responsible for

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issuing work permits from within Canada. IRCC also manages most of the data
sources on migration, although Statistics Canada also plays an important role in this
context (see Box 1.3).
The Canada Border Services Agency (CBSA) conducts the inspection of migrants’
health, character, and whether or not they pose a potential security risk at the border
on behalf of IRCC and as part of this work assists with the collection of
administrative data. The CBSA thus has a say as to whether a foreign worker can
enter Canada.
Another important actor in immigration management is Employment and Social
Development Canada (ESDC), Canada’s department for employment and social
programmes. ESDC was established as part of the Economic Action Plan 2013 and
is the successor of the Department of Human Resources and Skills Development
Canada (HRSDC). As one of the largest departments within the federal government,
ESDC contains Service Canada, the Canadian government’s main service delivery
agency. ESDC/Service Canada is the agency providing Labour Market Impact
Assessments (LMIA) to employers and IRCC. IRCC uses ESDC’s LMIA as one
factor to determine whether it issues a work permit to a foreign national.
A network of over 500 Service Provider Organizations (SPOs), excluding Quebec,
funded by IRCC, offer settlement and integration services to all permanent
immigrants, including labour migrants and their families. Services include needs
assessments and referrals, information and orientation, language training,
employment-related services, and community connections. Canadian citizens,
temporary residents and asylum claimants are not eligible for these federal
settlement services, but they may have access to settlement services funded by some
provinces/territories. In 2018-19, the federal government will invest approximately
CAD CAD62 million to support settlement needs.23 In addition, IRCC plans to
spend approximately CAD 6.5 million to experimentation in the areas of settlement
and integration service delivery. For example, IRCC will pilot the effectiveness of
incentive-based funding models for improving the performance of SPOs.
On the municipal and local level, integration is often managed through partnerships,
involving different societal actors including employers. One example of such an
independent organisation supporting skilled immigrants’ labour market integration
is the Toronto Region Immigrant Employment Council (TRIEC). TRIEC engages
employers, regulatory bodies, and other community organisations in cross-sector
collaboration to integrate skilled immigrants in the labour market of the Greater
Toronto Region. TRIEC’s Mentoring Partnership whereby skilled immigrants
profit from a mentoring relationship to Canadian professionals who share the same
occupation has involved 50 employers. Since its launch in 2003, over
60 organisations have joined the Council. A large role of IRCC is to fund,
coordinate and evaluate such actions, guided by regional governmental and non-
governmental actors.
As mentioned, the provinces and territories also play an important role in the
selection of labour migrants, through the provincial nominee programmes. Within
the immigration targets set by the federal government, a certain number are set aside

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for provincial programmes, which the provinces and territories design and
administrate largely independently. However, the federal government checks
admissibility requirements and issues the visa. Provinces also play a key role in the
recognition of foreign qualifications, as professions are regulated at the provincial
level, with varying regulations.

Box 1.3. Data sources on labour migration to Canada

Immigration, Refugees and Citizenship Canada (IRCC) and Statistics Canada,

Canada’s federal statistics agency, are the two main official sources for data on
immigration to and immigrant’s labour market outcome in Canada. Co-operation
between the two agencies is frequent. IRCC publishes a large amount of
migration data on the Government of Canada’s Open Government Portal, which
is publicly accessible. It further provides broad access to reports and department
plans on its website.
Both IRCC and Statistics Canada maintain extensive research and evaluation
divisions, which produce reports on migration matters. As a section of Statistics
Canada, the Canadian Centre for Data Development and Economic Research
(CDER) provides researchers whose projects are approved with secure access to
business and economic microdata for analytical research.
The Longitudinal Immigration Database (IMDB) integrates administrative
immigration data since 1980, with tax data since 1982. It provides detailed and
reliable information on socioeconomic outcomes of immigrants after their
admission, such as mobility and employment income, through linkages with the
tax files. However, the linkage with tax files implies that the information in the
database lags behind by 2-3 years. It connects short- and long-term outcomes
with characteristics at admission, such as immigrant admission category, source
country and knowledge of official languages. The database also provides
information on pre-admission experience in Canada and citizenship acquisition
since 2005.
A series titled Facts and Figures lists detailed annual statistical publications on
permanent and temporary immigrants, and is updated in regular intervals. Older
statistics and reports are accessible on the websites of Library and Archives
Canada and the Government of Canada Publications online catalogue.
A new source of data for researches as well as the federal government originates
from the Express Entry system itself. The Express Entry pool contains
information on the characteristics of interested potential labour immigrants who
passed the minimum requirements for one of the core permanent migration
programmes but have not yet submitted their application.
Another valuable source of data is the Canadian Census, which takes place every
five years with mandatory participation. To evaluate a migration management
system it is important to look at the outcome of those migrants selected

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themselves for their potential to make an economic contribution, typically

referred to as labour immigrants or principal applicants in this publication. In
contrast, data in most official Canadian publications combines labour migrants
themselves and their accompanying family members into the category economic
immigrants.

Composition of labour migration to Canada

Permanent labour migration
To plan how many permanent labour migrants the country admits annually, Canada
sets an overall immigration range in an immigration levels plan, which is a rolling
three-year plan since 2017 (see Table 1.2 and Chapter 2 for discussion). It includes
target levels for each immigration stream (economic, family, refugee) and the
classes and programmes that make up these streams.

Table 1.2. Canada’s immigration levels plan for economic immigration, 2019-21

2019 2020 2021

Low Target High Low Target High Low Target High
Federal High Skilled 76 000 81 400 86 000 81 000 85 800 88 000 84 000 88 800 91 000
Economic Pilots 9 000 16 000 20 500 6 000 9 000 12 000 To be determined
Federal Business 500 700 1 500 500 700 1 500 500 700 1 500
Provincial Nominee 57 000 61 000 68 000 62 000 67 800 71 000 67 000 71 300 74 000
Quebec Economic To be determined
Total Economic 174 000 191 600 209 500 181 000 195 800 206 000 189 000 202 300 212 000

Note: Economic immigration includes spouses and dependants of principal labour applicants.
Economic Pilots includes Caregivers (and legacy programmes such as the terminated Live-in
Caregiver Program) as well as the Atlantic Immigration Pilot Program and other envisioned
programmes. National targets for 2020 and 2021 will be confirmed by November 1 of each year.
Source: (IRCC, 2018[33]).

Over the last decade, the number of economic entry classes increased. At present,
economic immigrants can apply to migrate to Canada permanently as part of one of
the following immigration programmes/classes:
 Federal Skilled Workers (FSW)
 Canadian Experience Class (CEC)
 Federal Skilled Trades (FST)
 Provincial Nominee Program (PNP)
 Home Child Care Provider Pilot and the Home Support Worker Pilot
 The Atlantic Immigration Pilot Program
 Start-up business class
 Self-employed persons class

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The relative importance of these classes, and their evolution over time, is shown in
Figure 1.12. Labour immigrants who plan to live in Quebec need to apply to the
Quebec Economic Classes. In addition, some previous applicants continue to land
in Canada under the following three programmes that have been terminated: Live-
in Caregiver Program (LCP), Investors, Entrepreneurs and self-employed persons.
While the admission criteria of the main programmes and the main issues concerned
are analysed in-depth in subsequent chapters (Chapter 2 for the permanent federal
economic programmes, Chapter 3 for the dual-intent caregiver programmes, and
Chapter 4 for the provincial programmes), the following provides a brief overview.

Figure 1.12. Share of permanent labour immigrants by economic entry class,

1997-2017

Federal Skilled Workers (FSW) Provincial Nominees (PN) Canadian Experience Class (CEC)
Federal Skilled Trades (FST) Caregivers Business
100
% of permanent labour immigrants

90
80
70
60
50
40
30
20
10
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: OECD International Migration Database

(https://stats.oecd.org/Index.aspx?DataSetCode=MIG).

Since its inception, the points-based Federal Skilled Worker (FSW) class24 has been
the key entry channel, accounting in the 1990s and early 2000s for 80-90% of the
total intake, though its importance has been significantly declining, largely due to
the introduction of alternative programmes, including the Provincial Nominee
Program and the Canadian Experience Class. By 2017, only 30% of all labour
immigrants, about 24 500 principal applicants, landed via this programme.
Admission through the FSW is based on a range of criteria such as language,
education, work experience, and age.
As mentioned, Canada’s Provincial Nominee Program (PNP) aims to share the
benefits of immigration across the country by enabling provinces and territories to
nominate labour immigrants for specific skills needed to meet regional labour
market needs and support regional economic priorities. It has significantly
increased since its introduction in 1996, largely through reduced admissions in the
FSWP, although growth has tapered off since 2013. In 2017, about 23 500 labour
immigrants, 29% of the total, landed in Canada as PNs. Today all regions in Canada,
apart from Nunavut territory and Quebec, have agreements with the federal
government to nominate labour immigrants as PNs. Following the establishment of

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Express Entry, a share of Provincial Nominees applications is managed via the new
system for those who meet the entry criteria of one of the federal programmes.
Herein, they receive a high number of points – half of the maximum total – for a
provincial nomination, ensuring their timely selection.
Amendments to the IRPA in 2008 introduced the Canadian Experience Class (CEC)
as an addition to the existing economic entry programmes. The CEC aims to provide
a pathway for individuals with Canadian work experience, including international
graduates from Canadian educational institutions. The programme originally
comprised a student and a worker stream, but the two streams were merged in 2013.
Currently, all CEC applicants are required to have 12 months of Canadian work
experience within the 36 months prior to applying in a NOC level 0, A or B
(managerial, high-skilled or skilled) occupation. The programme thus selects
migrants with some prior attachment to the Canadian labour market. In 2017, over
21 000 principal applicants were admitted through the CEC, 26% of all labour
migrants.
Introduced through regulations, the Federal Skilled Trades (FST) Class began
accepting applications in January 2013, using Ministerial Instructions to cap the
number of accepted applications. Established to facilitate the migration of skilled
tradespeople to Canada, it addresses labour shortages in a range of trade
occupations. The FST Program provides a permanent path to residence for
individuals with qualifications/work experience in selected trades which require
lower levels of formal education than most other skilled occupations. To be eligible
for the FST Program, immigrants must have a full-time employment offer for at
least one year, or a certificate of qualification in that skilled trade issued by a
Canadian provincial or territorial authority. In addition to meeting the job
requirements (as defined by the NOC), applicants must prove at least two years of
work experience in their intended occupation within the last five years and meet the
required language levels in English or French. Since 2015, Express Entry manages
and selects applicants for the FST class. However, in 2017, only 745 individuals
landed in Canada as principal applicants through this class, comprising less than
1% of all labour immigrants.
Candidates often qualify for more than one programme, and with the introduction
of Express Entry, the lines between the different programmes have become further
blurred. Prior to March 9, 2016, candidates invited to apply for permanent residence
in more than one class – for instance under the FSW or the CEC – received an
invitation to apply as FSW. After this date, individuals who qualify for both classes
were invited as CEC which explains the strong growth in 2017 (Figure 1.12).
The category Caregivers includes admissions under the legacy of the Live-in
Caregiver Program (LCP) and its two successor pathways. The LCP was a
temporary foreign worker programme that by design provided a direct pathway to
permanent residence; i.e. it was dual intent. Upon the completion of two years full-
time work in a caring occupation, individuals could apply for permanent residence
under the LCP. A requirement of the programme was that caregivers resided with
the family they worked for, and if they decided to live-out, they lost their eligibility

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to apply for permanent residence as a live-in caregiver. Reforms to the LCP in 2010
made it easier for temporary workers to achieve residence requirements. Applicants
were allowed to use overtime hours to meet the two-year work requirement and the
timeframe for completing this requirement was extended from three to four years.
To help prevent workplace exploitation and abuse, the live-in requirement was
removed under the 2014 programmes. Under the 2014 programmes, foreign
national caregivers enter Canada as all other temporary foreign workers. Unlike the
former LCP, they are not assessed for their ability to economically establish as
permanent residents (e.g. official language, education) at the temporary stage.
Interested temporary foreign worker caregivers can apply for permanent residence
after they obtain the relevant work experience, if they meet all applicable permanent
residence requirements. In this way, the 2014 programmes were modelled on the
Canadian Experience Class, which requires Canadian work experience. However,
in contrast to the other economic permanent residence classes discussed above,
caregivers are not processed via Express Entry. As for all economic pilots, no more
than 2 750 applications can be processed annually under each of the 2014 pilot
programmes. The 9 200 labour immigrants admitted under the 2014 classes and
legacy of the LCP made up close to 11% of all new permanent labour immigrants
to Canada in 2017. As five-year pilots, the Caring for Children Class and the Caring
for People with High Medical Needs Class have been replaced by two new
caregiver immigration pilots in June 2019.
In March 2017, IRCC launched a pilot programme with a regional focus: The
Atlantic Immigration Pilot (see Chapter 4 for a discussion) which started as part of
the Skilled Workforce/Immigration pillar of the Atlantic Growth strategy, to
support economic growth in Atlantic Canada. As a joint federal-provincial pilot, it
addresses regional needs and tests new approaches to immigration and settlement.
Until the end of 2021, it provides an expedited pathway to permanent residence in
these provinces, including for workers in intermediate skilled occupations, together
with settlement support. All applicants need a job offer in order to meet the
eligibility requirements as well as a provincial endorsement before submitting an
application to IRCC. The programme targets up to 7 000 applicants in total until
2020, and is not processed via Express Entry. Instead, designated employers recruit
from abroad and from within Canada among temporary residents. Prospective
candidates then need to undergo a needs assessment and a settlement plan from a
Service Provider Organisation (SPO).
In addition, a small share (less than 2% in 2017) of permanent labour immigrants
lands in Canada every year as business immigrants. Individuals are currently
admitted via the Self-Employed Program and the Start-Up Visa Class for
entrepreneurs, which started in March 2013. The previously existing business
programmes, namely the Immigrant Investor Program and the Federal Entrepreneur
Program, had been active for more than three decades but there were concerns about
fraud and limited economic benefit to Canada (Ali, Ali and Bauder, 2014[34]).
Each of the business classes has different eligibility requirements. In general, they
demand proof of applicants’ ability to establish themselves economically and
provide benefits to Canada through entrepreneurial activity or self-employment.

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58  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

Business immigrants are managed outside of the Express Entry system, and due to
their small number they are not in the focus of this labour migration review.

Temporary labour migration

Canada is also a major destination for temporary labour immigrants. These
immigrants come to Canada for different purposes and durations. This review
regards temporary migrants who come for work purposes and international
students, as the latter are allowed to work in Canada part-time during academic
season and full-time during academic breaks. Links between the two categories are
strong. Many students work part-time off-campus or extend their stay to work in
Canada upon graduation. Moreover, some individuals take up studies after having
worked in Canada temporarily.
In order to work in Canada legally, temporary labour immigrants require either a
valid work or a study permit, respectively. Since administrative changes in 2014,
the various streams of temporary labour migration are grouped under two umbrella
programmes: the Temporary Foreign Worker Program (TFWP) and the
International Mobility Program (IMP). Formally, the distinction between the two
programmes is whether temporary labour migrants do or do not need a Labour
Market Impact Assessment (LMIA) for their work permit.
Both TFWP and IMP encompass various programmes and agreements, with
varying preconditions and operating procedures. The TFWP includes individuals at
all skill levels, with a significant portion working in agriculture, including in
seasonal jobs such as via the Seasonal Agricultural Workers Program (SAWP).
Individuals coming to Canada via the IMP include participants of International
Experience Canada (IEC), a working holiday programme for young people, or
beneficiaries of international agreements, which include mobility provisions such
as the Canada-EU Trade Agreement (CETA). Work permits for intra-company
transfers and post-graduate employment are also part of the IMP, as well as spouses
of skilled workers and some researchers. Over the last decade, the number of work
permit holders in the IMP increased significantly. Since 2007, their number has
more than doubled, while the number of TFWP declined by over 30%.

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 1. CONTEXT FOR LABOUR MIGRATION TO CANADA  59

Figure 1.13. Work permit holders for work purposes by programme and year in
which permits became effective, 2007-17
TFWP IMP
350000
300000
250000
200000
150000
100000
50000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: In 2014 the Off Campus Work Permit for students was terminated.
Source: IRCC Temporary Residents. Data request tracking number: RE-19-0313.

Temporary workers can apply for an extension of their work permit from within
Canada before their current permit expires and are allowed to continue working
until a decision is made. Since 2016, there is no set limit to the duration that
individuals can work in Canada as a temporary worker, so people can in principle
renew their temporary work permits indefinitely if the respective visa allows for
this. At the end of 2016, most TFWP work permit holders were citizens of the
Philippines (29%), Mexico (16%) and Guatemala (8%) – with the latter two mainly
in seasonal agriculture. By contrast, at the end of the same year, most of the IMP
work permit holders were citizens of India (16%), China (13%) and the USA (12%).
Finally, Canada is also a popular destination for international students. According
to OECD standardised data, the number of residence permits issued to international
tertiary-level students more than doubled over the 2008-16 period, the strongest
increase among all settlement countries (OECD, 2018[35]). Since 1 June 2014,
international students with a valid study permit can work off-campus for up to
20 hours per week during academic terms or full-time during academic breaks
without an additional work-permit. Hence, the off-campus employment
programme, an LMIA-exempt work permit for international students and as such
part of the IMP, was terminated. This policy change is the reason for the slight
decline of permits under the IMP following 2013. In addition, previous students can
obtain post-graduation work permits after completion of their studies. The top
source countries for international students in 2017 were India (27%), China (26%),
the Republic of Korea (5%) and France (5%).

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60  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

Notes

1
In this review, the term “labour migrant” refers to individuals who apply to one of Canada’s
economic classes of permanent migration (principal applicants) or who arrive under one of the
temporary labour migration categories (see Chapter 3). The term “economic migrant” refers to
permanent labour migrants and their accompanying family.
2
Permanent immigrants in Canada are often referred to as “landed immigrants”. Landing is not the
same as first arrival or arrival in Canada but the point of (transitioning to) becoming a permanent
resident.
3
An interim review preceded this edition (OECD, 2016[37]).
4
That is, landing as PNP and CEC.
5
Admissions under the FSW catch up to those of the PNP after five to six years and in the following
exceed their earnings.
6
In Canadian official statistics, also applied in the COPS analysis, skill-levels are generally defined
as the amount and type of education and training required to enter and perform the duties of an
occupation. The National Occupational Classification (NOC) established a typology of five broad
skill level categories: 1) management occupations (sometimes denoted as skill-level 0); 2) skill-level
A, which includes occupations usually requiring university education; 3) skill-level B, which
includes occupations usually requiring college education or apprenticeship training; 4) skill-level C,
which includes occupations usually requiring secondary school and/or occupation‐specific training;
and 5) skill-level D, which includes occupations for which on‐the‐job training is usually provided.
7
The job vacancy rate represents the number of job vacancies expressed as a percentage of labour
demand; that is, the sum of all occupied and vacant jobs.
8
For an analysis of mobility within Canada see Chapter 4 of this report.
9
Initially called the British North America Act.
10
Preferred countries included Britain, the United States, the Irish Free State, Dominion of
Newfoundland, Australia, and New Zealand.
11
Order-in-Council, October 1st, 1967, PC 1616.
12
Australia was next to adopt a point system in 1979, followed by New Zealand in 1991 and the
United Kingdom in 2002.
13
The 1976 Act committed Canada to accept a number of refugees every year and not just in
emergencies as had been previous practice.
14
Many migrants enter Canada through humanitarian and family streams. While many of them
participate in the labour force, they are selected for reasons other than their potential economic
contribution. Therefore, these migrants are not included in this review of labour migration.

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 1. CONTEXT FOR LABOUR MIGRATION TO CANADA  61

15
The official name of the programme was Pilot Project for Occupations Requiring Lower Levels
of Formal Training.
16
Similar requirements currently apply for the seasonal agricultural programme.
17
The CRS-score (Comprehensive Ranking System) is sometimes referred to as the ITA-score
(Invitation to Apply).
18
Permanent residents are considered part of the Canadian workforce. Indeed, permanent residents
have virtually all rights and duties of Canadian nationals, apart from active and passive voting rights
and the unlimited right to return.
19
Permanent economic immigrants, who want to receive points for a job offer, and whose job is not
LMIA-exempt also require an LMIA. The former name of the LMIA was Labour Market Opinion
(LMO).
20
In addition, the foreign worker has to pay a CAD 155 work permit fee.
21
https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-
manuals/operational-bulletins-manuals/temporary-residents/foreign-workers/exemption-
codes.html
22
IRCC’s mandate (as CIC’s before) originates from the Department of Citizenship and Immigration
Act of 1994. In addition, the Immigration Minister is responsible for the Citizenship Act of 1977
and shares responsibility with the Minister of Public Safety for the Immigration and Refugee
Protection Act (IRPA) of 2002 (IRCC, 2016).
23
This figure excludes Quebec, as the provincial government is responsible for reception and
integration services for permanent residents supported by a separate grant.
24
The words «class» and «programme» are used interchangeably in the Canadian context and also
in this report.

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62  1. CONTEXT FOR LABOUR MIGRATION TO CANADA

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Green, A. and D. Green (1999), “The Economic Goals of Canada’s Immigration Policy, Past and [23]
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 2. PERMANENT LABOUR MIGRATION  65

Chapter 2. Permanent labour migration

This chapter first traces how the Canadian selection system for permanent labour
migrants has evolved since the introduction of the points-based system in 1967. It
then describes and analyses the Express Entry (EE) system. This two-step selection
system, introduced in 2015, builds a pool of eligible candidates (Expression of
Interest) from which labour migrants are selected (Invitation to Apply). The chapter
then compares and contrasts EE to two main peer systems in other countries –
SkillSelect in Australia and the Skilled Migrant Expression of Interest system in
New Zealand. The chapter also analyses the performance of Express Entry during
its first four years of operation. It details how well EE is fulfilling the objectives
laid out at its inception: i) greater flexibility in selection and application
management; ii) better responsiveness to labour market and regional needs; and
iii) quicker application processing.

The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The
use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli
settlements in the West Bank under the terms of international law.

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66  2. PERMANENT LABOUR MIGRATION

When migration policy debates refer to the Canadian migration system, they often
– implicitly – refer to the points-based system for permanent skilled labour
migration. A points-based system allows selection of immigrants based on a range
of differing criteria balanced against each other. In Canada, such a system was
introduced in 1967 and has since then undergone various reforms, outlined at the
beginning of this chapter.
However, the traditional points-based system with a passmark, while balancing
selection criteria, was not sufficient to respond to key challenges, including long
processing times and an inability to prioritise among qualified applicants. It is
against this backdrop that Canada introduced, in 2015, “Express Entry” (EE), a two-
step dynamic skilled labour migration system. The chapter examines how well
Express Entry has performed during its first four years of operation against the
objectives at its inception: i) greater flexibility in selection and application
management, ii) better responsiveness to labour market and regional needs, and iii)
increased speed in application processing.
Express Entry selects applicants among a pool of qualified individuals, who have
expressed an interest in permanently migrating to Canada. This chapter outlines the
criteria applicants need to meet for pool entry along the three federal programmes
managed with this Expression of Interest system. It further depicts the mechanism
which sorts applicants within the Express Entry pool.
With the start of its new system, Canada introduced a number of innovations. These
include the consideration of interaction between different factors such as language
proficiency and education, as well as a continuum of points in its ranking system
allowing for a more refined selection than in other countries. New evidence and
monitoring of the intake of the first rounds of Express Entry already led to two
major reforms of the system. These addressed several initial shortcomings such as
a reduction of the previous excessively high points for a job offer. The reforms
resulted in a shift from a demand-driven to a largely supply-driven selection based
on broad human capital characteristics.
At the same time, several challenges for permanent labour migration management
under the new system remain. In particular, reflecting previously clearly separate
pathways, Express Entry operates three different pool entry programmes, of which
only one uses a points grid for entry. Under the new comprehensive ranking system,
this leads to different standards in pool-entry requirements and the criteria applied
for final selection. This also engenders a number of inconsistencies in the system.

Evolution of the Points-Based System

The evolution of the Points-Based System (PBS) in Canada is a reflection of
changing immigration objectives. Indeed, a key characteristic of the Canadian
approach to migration management are frequent adaptations to react to new
evidence and challenges, but also to changing political priorities. From the frequent
adjustments to the points granted, the following section only discusses the most
significant changes.

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 2. PERMANENT LABOUR MIGRATION  67

The PBS works through a points grid to determine selection criteria. Its key
characteristic is the possibility to trade-off some skills against others (e.g. higher
language skills for somewhat lower qualification levels). The government adjusts
criteria for selection by assigning more or less points to certain factors. In the past,
these adjustments have swung between favouring general human capital and
reacting to specific labour demands (Ferrer, Picot and Riddell, 2012[1]; Green and
Green, 2004[2]).
When the PBS was first introduced, human capital accounted for 30% of all points,
labour market factors for another 40% and other factors, including age and
adaptability, for the remaining 30%. At the time, adaptability was assessed in a
face-to-face interview. An applicant needed half of the total maximum points to be
eligible for admission. As a result, human capital, age and adaptability together
were sufficient for an applicant to pass the mark of 50 points, without fulfilling any
labour market specific demands. Canada later adopted a pro-cyclical immigration
policy, increasing immigration during economic booms and limitations during
recessions (Figure 2.1). The country abandoned this policy in the 1990s.

Figure 2.1. Immigration and unemployment rates, 1965-18

Immigration Rate Unemployment Rate
Immigration Rate Unemployment Rate
1.2 14

1.1
12
1

0.9 10

0.8
8
0.7

0.6 6

0.5
4
0.4

0.3 2
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Note: Immigration rate as a percentage of annual population, unemployment rate of last quarter in
given year.
Source: OECD Secretariat calculations based on data from IRCC.

In 1974, the government introduced a penalty of ten points for applicants without
pre-arranged employment or intention to work in a designated occupation and from
1982-86, Canada granted admission only to applicants with pre-arranged
employment (Green and Green, 1999[3]).
Major changes introduced in 1986 involved allocating more points for language
ability and less for adaptability. In addition, the government removed the
requirement of pre-arranged employment and instead introduced a “levels” factor,

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68  2. PERMANENT LABOUR MIGRATION

a discretionary allocation of ten points, used to control the number of persons

entering over a certain period. The new policy also included a higher pass mark of
70 points.
As outlined in Chapter 1, in the early 1990s, Canada moved away from long-term
demographic goals and instead used designated occupation lists based on specific
occupational shortages. Immigrants who matched the occupation on a list received
additional points and were processed on a priority basis. This use of immigration
for short-term economic demand was again reverted in the second half of the 1990s
to favour long-term benefits of increased immigration. This change occurred
despite high domestic unemployment at the time, with the intention of raising the
overall skills levels of the population rather than responding to immediate labour
needs. In 1996, the government for the first time employed the idea to adjust the
pass mark depending on the occupational group of an applicant, acknowledging
structural mid-skilled shortages.1
In 2002, with the Immigration Refugee and Protection Act (IRPA), education,
experience and language – all human capital factors – obtained more weight. Points
for education and language increased, comprising 49% of all points, while
experience increased to 21%. For the first time, tertiary (university) education
became a necessity to scoring full points for education. Human capital factors alone
accounted for a full 93% of the points for the pass mark. In contrast, the number of
points responding to labour market needs decreased even further than it had been
in the second half of the 1990s. From 2002 onwards, adaptability was no longer
assessed with an interview; instead, applicants received points for prior exposure to
and experience in Canada. Furthermore, points for spouses’ human capital and
labour market factors became part of the adaptability score, which could but did not
need to be claimed. The pass mark rose to 75% of total points but was scaled back
the following year to 67% of the total points, where it has remained since. Table 2.1
provides on overview of some of the major changes. Authorities processed
applications in the order of submission.

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 2. PERMANENT LABOUR MIGRATION  69

Table 2.1. Evolution of the Points-Based System (current FSW entry grid) 1967 to
present
Percentages of maximum points and pass mark
1967 1986 post-2003
% of % pass % of % pass % of % pass
points mark points mark points mark
Human capital 30% 60% 35% 50% 68% 101%
Language 10% 20% 15% 21% 28% 42%
Education 20% 20% 12% 17% 25% 37%
Experience 20% 8% 11% 15% 15%
Labour market demand 40% 20% 35% 50% 10% 15%
Arranged employment / 25% 20% 20% 29% 10% 15%
occupational demand
Vocational preparation 10% 20% 15% 21%
Destination 5% 10%
Other 30% 60% 30% 43% 22% 33%
Age 10% 20% 10% 14% 12% 18%
Personal Assessment / 20% 40% 10% 14% 10% 15%
Adaptability / Relatives
Levels 10% 14%
Points possible / needed 100 50 100 70 100 67*
Pass mark in % 50% 70% 67%

Note: The table shows only key changes. Due to percentage rounding, shares do not round up to
totals indicated. *Set at 75 points (75%) from June 2002 to September 2003, thereafter decreased to
67 points. Pass mark of 67 used for calculating shares.
Source: OECD Secretariat calculations based on data from IRCC and Green and Green (1999[3]).

Given the pass mark of 67 points, a large number of applicants qualified for
admission based on their human capital endowment alone. As numbers of
applications rose faster than the ability of the authorities to deal with requests,
backlogs of applications continued to grow. In addition to the large numbers, the
verification process involved substantial manual assessment and human interface.
A series of Ministerial Instructions since 20082 introduced a mix of qualifiers for
expedited processing such as in-demand occupations and later numerical limits.
Ministerial Instructions empower the federal Minister for Immigration to pause,
decline and return unprocessed applications. Any such modifications to
immigration policy were previously possible only through regulatory change and
consultation. This flexibility aimed at streamlining application processing in line
with changing priorities and at addressing the large inventory of applications that
had built up since the late 1990s. For specific periods, the ministry reduced the
points granted for work experience to 15% and increased the points awarded for
language proficiency. Besides changes to the grid, a job offer or an occupation in
demand became – temporarily – mandatory. In line with these changes, the ministry
made other infrastructure adjustments. Key among them was the centralisation of
the initial review of Federal Skilled Worker (FSW) applications in Canada through
a new Centralized Intake Office for paper-based applications.
The entry points grid’s six main selection factors (language, education, experience,
job offer, age and adaptability) for Federal Skilled Workers (FSW) were maintained

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70  2. PERMANENT LABOUR MIGRATION

for this class in 2015, when Express Entry was introduced. It is important to note
that this entry points grid differs from the Comprehensive Ranking System (CRS)
that allocates points within the Express Entry pool, the differences are discussed in
more detail below. In brief, the entry points grid allocates up to 100 points (67 allow
a candidate to apply as a FSW) whereas the CRS grants up to 1 200 points out of
which a varying number are needed to be invited to apply for permanent residence.
The entry point grid is only applicable as a first step for those wishing to come to
Canada as a Federal Skilled Worker, whereas the Comprehensive Ranking System
(CRS) ranks everyone, who passed the requirements of at least one of the currently
three federal skilled economic immigration classes.
Until the introduction of Express Entry in January 2015, Canada had a one-step
PBS for selection of permanent economic immigrants. Leading up to 2015, the
immigration system was confronted with two major challenges. First, for many
years, the department was obliged to process every application received until
amendments to IRPA were introduced in 2008. This allowed the government to set
a limit on the number of applications to be accepted for processing. However, with
years of demand outstripping departmental capacity to process, by 2008 the FSW
backlog had already grown to over 600 000 applications and with wait times of
almost three years (IRCC, 2010[4]). Second, the system provided no means for
prioritisation of candidates among applicants. In particular, employers faced long
and uncertain waiting periods and applicants could not alter their application once
submitted. Thus, neither changes in personal qualifications of applicants (supply
side) nor in labour market and economic conditions (demand side) could accelerate
admission of those in the queue. The series of Ministerial Instructions issued since
2008 have aimed to improve targeting and enhance flexibility and responsiveness
to changing demands. However, limits on immigration programmes did not address
the main problem: the inability to efficiently prioritise processing.
Express Entry builds on the points-based infrastructure that had been in place for
more than four decades and changed the application process to incorporate a pre-
screening and an official invitation step. Its introduction drew on extensive
research, consultation with many stakeholders, including employers, and builds on
the experiences of peer countries pursuing a two-step labour immigrant selection,
with Expression of Interest models pioneered in New Zealand in 2003 and
introduced by Australia in 2012.

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 2. PERMANENT LABOUR MIGRATION  71

Express Entry
The general process of the Expression of Interest system
Figure 2.2. Express Entry basic functioning

Express Entry pool

Minimum
Comprehens Invitation to
Expression Entry Application
ive Ranking Apply
of Interest Requiremen Processing
System (floating)
t (fixed)

A key objective of Express Entry is to enable the selection of the best candidates at
any time and to prioritise the various programme intakes to reflect changing
economic conditions and political preferences. The system manages migration in
two steps: first, all candidates who meet entry requirements are admitted (fixed
mark) into a pool and second, candidates in the pool are ranked against one another
and chosen in descending order until a fixed number of entries is reached (floating
mark).
In the case of Canada within this two-step process, applicants first submit an
Expression of Interest (EOI) and if they meet the eligibility criteria for at least one
of the federal economic visa categories, enter a pool of candidates called the
Express Entry pool (Figure 2.2). Within this pool, a Comprehensive Ranking
System (CRS) automatically assigns points to each applicant according to
transparent criteria. As a result, each applicant has an individual CRS-score and
ranks relative to all candidates in the pool.
About every second week, IRCC publishes a Ministerial Instruction stating the total
number of candidates it invites to apply for permanent residence. Such Invitations
to Apply (ITA) are sent to the highest ranked candidates in the Express Entry pool
in descending order until reaching the candidate(s) whose CRS-score is exactly at
the pass mark for selection for this specific draw.3 Thus, candidates in the pool must
have a CRS-score at least equal to the minimum pass mark at any given draw to
receive an Invitation to Apply for permanent residence. However, depending on the
composition of the pool (other candidate’s CRS-score4) the minimum CRS-score
needed to receive an ITA in the given round is changing. While Ministerial
Instructions state the number of ITAs, for easier reference the ministry also
publishes the resulting minimum CRS-score.
The numbers of ITAs for permanent residence visas are determined within the
framework of a multi-annual Immigration Levels Plan, which sets out the broad
admission ranges for federal high-skilled migration, by stream. The number and
“type” of labour migrants selected at any draw remain at ministerial discretion. For
instance, the minister can decide to pick only candidates of one or several visa

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categories. In addition, the government is able to adjust the points granted in the
CRS, again by using Ministerial Instructions.
The CRS-score calculation is a transparent process and interested applicants can
pre-calculate their expected score online at no cost. The efficiency gains in
processing time allow for a realistic timeframe estimation and applicants can update
and thus improve their CRS-score while remaining in the EE-pool. This is also
possible in the Australian system, where applicants can access their EOI and update
information at any time. In contrast, in New Zealand applicants need to provide
information to Immigration New Zealand why they want to change their details and
thereafter need to re-submit their Expression of Interest.
After submitting their Expression of Interest and on a voluntarily basis labour
migrants can register on Job Bank, an online job search and matching platform and
service of Employment and Social Development Canada (ESDC). This allows them
to market themselves to employers. At the same time, they can also search on
private job vacancy boards. Employers registered on the Job Bank can view
applicants’ profiles (though not their personal contact details) until they decide to
interview them. When a match proceeds to an interview and a decision is made to
hire, employers with an approval to hire a foreign worker (a positive Labour Market
Impact Assessment) provide this information along with a job offer letter to the
candidate. Candidates can update their Express Entry profile accordingly. Provinces
and territories are able to view and nominate applicants in the Express Entry pool
directly if candidates meet their regional programmes criteria. Applicants who
accept such a provincial nomination – to live in the region – update their Express
Entry profile accordingly. Applicants can also increase their points, by, for instance,
improving their certified language levels, formal education credentials or claiming
points or no points for a spouse or common law partner.
Candidates successfully drawn from the pool receive an Invitation to Apply (ITA)
for a permanent residence visa and have up to 60 days to submit a complete
application. This should include all documents relating to admissibility and points
claimed in various selection factors. The same period, 60 days, applies in Australia
while in New Zealand applicants have four months to send the final application
once they have been invited to apply for residence. Applicants who decline an ITA,
or did not receive one due to their CRS-score, remain in the pool for up to
12 months. This duration of profile validity is between the duration in the Australian
system where profiles are valid for 24 months and the system used in New Zealand
where they are valid for six months.
As the government defines the number of ITA it issues and not the required CRS-
score, the threshold is floating. Consequently, the same score of points in the
Express Entry pool can be sufficient to get an invitation in one draw but not in the
next, as candidates exit and enter the pool between draws. As a result, the pool is
constantly changing and applicants face varying competition to receive an ITA.
Until the end of 2018, IRCC issued 107 MIs stating the number of ITA and the
resulting minimum needed CRS-score.

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The system provides an online platform for managing applications, the automation
of most processing stages and the ability to seek nomination from provinces and
territories as well as job offers – via a linked platform – from employers. EE does
not employ any discretionary elements, except for the set pass marks and changes
to the score calculation. Under Express Entry, the estimated target processing time
between submission of a completed visa application and the final decision on a
permanent residence visa is six months. Figure 2.3 gives an overview of an
application process via Express Entry.
Figure 2.3. Express Entry high-level principles and processes
Possible to secure beforehand job offer
with positive LMIA or a PT nomination.

Self-assess eligibility System electronically Complete

online through Come assesses if Expression electronic
to Canada tool. of Interest meets profile with
Provide details of minimum entry detailed
age, official language requirements for at personal data
proficiency and least one federal pro- and submit
credentials. gramme. candidature.

15 minutes 120 minutes

Applicants may register on Job Sucessfull candidates enter the Express Entry pool.
Bank and contact or get
contacted by employers. Job The Comprehensive Ranking System (CRS)
offers may need positive Labour electronically sorts and ranks according to points
Market Impact Assessment. total and rules in force at the time.

Applicants can update their profile and improve their

PTs may contact CRS-score.
applicants and if
additional criteria for
PNP need is met, PTs Once an ITA is received, candidates have 60 days to submit
make nomination. their formal application. Candidates who decline or do not
receive an invitation remain in the pool for 12 months.

The CRS-score of the last IRCC issues a Ministerial Instruction stating the
invited candidate who meets number of applicants to receive an Invitation to
the pass-mark defines the Apply (ITA). Top ranked candidates in the Express
floating cut off threshold. Entry pool are invited.

Applicant submits online Centralised Final decision

E-appl for permanent processing verifies approved
6 months

residence visa that EOI/ITA criteria, (declined) by

includes health, character fees assessment, centralised or
(police) records and other workload international
documentation. distribution etc. processing.

Source: OECD Secretariat.

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74  2. PERMANENT LABOUR MIGRATION

Step 1: Minimum entry requirements

The first step for applicants into the Express Entry pool is to submit an electronic
profile. Express Entry is open to three visa categories of federal economic
immigration programmes: Federal Skilled Workers (FSW), Canada Experience
Class (CEC) and Federal Skilled Trades Program (FST). All candidates in the pool
must meet the minimum eligibility requirements for at least one of these
programmes. Applicants who apply via Express Entry to be a Provincial Nominees
must also meet the minimum qualifying criteria the respective province/territory’s
Express Entry PN category.5
At this first selection step, Canada uses an entry points grid only for the FSW
category where candidates must gain a minimum of 67 points of the total
100 available. For the other immigration programmes, candidates do not need to
pass a points mark but to fulfil programme specific requirements. In Australia,
applicants to Skilled Independent and Nominated Visas using the SkillSelect
system have to pass a points test, while some other visa categories require specific
selection criteria (OECD, 2018[5]). In New Zealand, applicants to the Skilled
Migrant Category Resident Visa and those for Entrepreneur Work visas have to
pass a fixed points mark (Government New Zealand, 2019[6]).
Applicants to Canada start with a self-assessment through an online tool “Come to
Canada”. Based on several criteria (province of interest, age, language ability,
family members, education, settlement funds, work experience and details on any
job offer) the tool identifies if the candidate meets the criteria for any permanent
federal immigration class. If minimum requirements in one immigration class are
met, the candidate receives a personal reference code and is asked to submit online
and free of charge an Express Entry electronic profile that includes their mandatory
language test scores, educational credential assessment (required for Federal
Skilled Workers), details of work experience and, where applicable, a job offer or
provincial nomination. Assessment providers issue documents with unique identity
numbers, which ensure authenticity and reduce subsequent efforts for verification.
Applicants might be eligible for more than one programme, which will be noted in
their file, but can only be invited into one programme. IRCC decides under which
programme applicants should apply and be processed. This is called the
“precedent”. At launch the precedent order was FST, FSW, CEC. This order was
changed to FSW, CEC, FST on June 26, 2015. In the following and until March 9,
2016, the hierarchy was FSW, CEC, FST. Thereafter, IRCC started to invite eligible
candidates first as CEC, next as FSW and last as FST, to decrease processing times.6
This process is in contrast to SkillSelect in Australia, where candidates themselves
decide for which programme they are suited and can apply for several visa
categories (but only one occupation) within one application.
All interested applicants must be admissible, in terms of health and security
concerns, to enter Canada. In addition, they need to specify the amount of finances
they dispose of to support their settlement. Individuals invited to apply as FSW or
FST need to dispose of a certain minimum sum, unless they are currently already
authorised to work in Canada, and have a valid job offer from an employer in

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Canada. Those invited to apply under the CEC do not need to meet the fund
requirements. The amount of money required depends on the size of the family. An
individual applicant has to proof CAD 12 475. For each additional family member,
the amount increases by between CAD 3 000 to CAD 4 000. The amount of
minimum funds is adjusted annually.
At this stage, Express Entry assigns applicants an Express Entry Profile Number
and a Job Seeker Validation Code. The Express Entry profile remains valid for one
year. The initial online assessment takes around 15-20 minutes and the submission
of a detailed Express Entry Profile around two hours, provided all required
information is at hand.

Age restrictions
While younger candidates obtain more points, there is in principle no maximum age
for admission to Canada.7 This stands in contrast to the systems in Australia and
New Zealand. In Australia,8 candidates must be under 45 years of age at time of
invitation for the skilled independent visa, in New Zealand the age threshold to
submit an EOI for the Skilled Migrant Category Resident Visa is 55 years. Part of
the motivation for such age thresholds is the fact that after, the expected working
life ahead is no longer sufficient to finance future transfers, and the aggregated
discounted fiscal impact tends to turn negative. This age-range typically tends to be
around 45 years, but can be earlier or later depending on the expected earnings and
the tax-benefit system (OECD, 2013[7]).

Skilled work experience

Another requirement is experience in skilled employment. As skilled occupation
are considered those occupations that are listed as skill type 0 (managerial jobs),
skill level A (professional jobs) or skill level B (technical jobs and skilled trades)
in the 2016 version of Canada’s National Occupation Classification (NOC). The
minimum requirement for an applicant to the FSW Program is to have 12 months
of continuous full-time work experience9 in such a skilled profession over the last
ten years. Applicants to the CEC need a minimum of 12 months of skilled work
experience in Canada, in the last three years. Self-employment and work experience
gained as a full-time student do not count as work experience for the CEC.
Applicants to the FST class require at least 24 months of full-time work experience
in a specific skilled trade (skill level B) in the five years prior to applying. All skilled
work experience has to be full-time or the equal amount in part time.

Language competency
Every applicant has to submit his/her proof of language skills in either English or
French, the two national languages. This includes individuals born in an
English/French speaking country who regard the language(s) as their mother
tongue. The language test has to cover four core competences (reading, writing,
listening and speaking) and must not be older than two years on the day of
application for permanent residence. Applicants can prove English language skills

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with the CELPIP-General test or the IELTS General Training test. They can only
use the TEF Canada (test d’evaluation de français) to verify French skills.
To be eligible for the FSW Program, individuals must meet or exceed the language
threshold of Canadian Language Benchmark (CLB) or Niveaux de compétence
linguistique canadiens (NCLC) 7, which is equivalent to intermediate skills
(B2 level in the Common European Reference Framework).10 To meet the
minimum requirements for CEC, the language level depends on the skill level of
the job. CEC with NOC 0 or A must have the same language levels as a FSW
(CLB/NCLC 7). For a NOC B job, the minimum level is CLB/NCLC 5 (about B1
in the Common European Reference Framework). Thus, for a significant part of
CEC applicants, lower language thresholds apply than for applicants in the FSW.
The reasons for this are not entirely clear. If anything, a higher Canadian language
proficiency should be expected of an applicant who has spent time studying or
working in Canada, since language is a key determinant for successful labour
market integration. In the case of the FST, the minimum levels for speaking and
listening are CLB/NCLC 5 and for reading and writing CLB/NCLC 4.
In New Zealand, applicants to the Skilled Migrant Category Resident Visa need to
prove somewhat higher language competency, roughly equivalent to a CLB 8, to be
eligible to apply (IELTS level of 6.5 or more, a TOEFL 79 or more, Cambridge
English B2 First (FCE)). However, if the applicants proves periods of study or
skilled work experience in an English speaking country, this requirement can be
waived. Higher levels of English may be required for certain occupations by
professional bodies, but are not otherwise rewarded through higher points as this is
done in the Canadian CRS (OECD, 2014[8]). In Australia, applicants to the Skilled
Independent Visa (subclass 189) need certified “competent” English language
skills, roughly equivalent to a CLB 7 (IELTS level of 6, a TOEFEL 69).

Educational qualification
An Education Credential Assessment (ECA) is mandatory for applicants who want
to apply as a FSW and no minimum education level currently exists for CEC and
FST. FSW applicants must have a minimum of Canadian equivalent secondary
school (high school) or post-secondary school certificate. If a candidate earned
his/her educational credential outside Canada, a designated organisation must
verify its equivalence to a Canadian credential. It is mandatory to use one of
currently seven IRCC-designated organisations that issue an Educational Credential
Assessment.11 This assessment does of course not guarantee every employer
accepts the foreign education as equivalent. What is more, it is not the same as a
formal recognition. This is particularly relevant in credentials in regulated
professions, for which a licence to practice is required. There are many such
occupations in Canada. Currently, Canada regulates around 15-20% of all
professions, usually in the mid-skilled segment, and recognition requirements differ
by province and occupation. Applicants need to check beforehand whether they
intend to work in a regulated profession in Canada, and if so what the procedures
for recognition entail.

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In New Zealand, educational qualifications have to be formally recognised by the

New Zealand Qualifications Authority with respect to the level the qualification
occupies on the New Zealand Qualifications Framework (NZQF). However, there
is a rather extensive 'List of Qualifications Exempt from Assessment', specifying
degrees and awarding institutions by country (New Zealand Government, 2019[9]).

The FSW specific entry grid

Apart from meeting the above minimum requirements, applicants for FSW must
score 67 out of 100 points available in the FSW specific entry grid.12 Table 2.3
outlines the maximum number of points available per factor.

Table 2.2. FSW entry grid points allocation

Factors Points (maximum)

Ability in English and or French 28 points
Education 25 points
Experience 15 points
Age 12 points
Arranged employment 10 points
Adaptability 10 points
Total / Pass mark 100 points / 67 points

For language ability, applicants receive 24 points if they pass the CLB level 9 or
higher in each of the four language skills (speaking, listening, reading, writing) and
can earn additional four points for their skills in the second official language if they
score CLB 5 or higher in all of the four. As FSW applicants require a CLB 7 to be
eligible, they need at least 16 points for this criteria. In order to receive the
maximum 25 points for education, applicants need a university degree at a doctoral
(PhD) level or equivalent. Lower education levels grant fewer points. The minimum
requirement, a Canadian high school diploma or equivalent, earns a candidate five
points in this category. Applicants also receive points for the number of years they
have spent in full-time paid work. If their working experience was in a NOC skill
level 0, A or B occupation for six or more years within the last ten years, they obtain
the maximum number of 15 points. The minimum entry requirement, one year of
paid skilled work experience, grants nine points. Regarding age, individuals
between 18 and 35 years receive the highest number of points in this category: 12.
For each additional year, one points is deducted. Individuals aged 47 or older do
not receive any points for age. A full-time job offer of at least one year from a
Canadian employer under specific conditions grants 10 points. Finally, applicants
can earn in total maximum 10 points for “adaptability”. With this line, one year of
full time skilled work experience in Canada grants 10 points. The same goes for
combinations of two of the following, which provide five points each: arranged
employment, past study experiences in Canada, spouses or partners language
knowledge, spouses or partners past study or work experience in Canada, relatives
in Canada.
This entry grid is the same points-based system as has been in place for FSW before
the introduction of Express Entry. However, achieving the successful pass mark of

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67 points only grants the right to enter the Express Entry pool under the category
of a Federal Skilled Worker (FSW). The FSW entry grid is specific to this economic
programme and the other economic classes (CEC and FST) do not use any entry
grid but specific eligibility criteria.

Additional criteria for FST

In addition to the minimum requirements regarding language and work experience
mentioned above, FST-applicants must also meet the requirements for their skilled
trade as defined in the NOC. Applicants either have to have a valid job offer of full-
time employment for a total period of at least one year, or a certificate of
qualification in their skilled trade issued by a Canadian authority. 13 The FST class
is not open to all NOC Skill Level B occupations, but currently limited to four major
and two minor groups of the NOC. These occupations are in industrial,
construction, maintenance, agriculture, processing, transport and manufacturing
trades; as well as cooks, chefs, bakers and butchers.
Figure 2.4 provides an overview of the requirements under each programme to enter
the Express Entry pool.

Figure 2.4. Eligibility criteria to enter the Express Entry pool

Skilled work at least 1 year at least 2 years within the

experience last 5 years in NOC:
(NOC 0, A, B) in any country - Major Group: 72, 73, 82, 92
in Canada
within the last 10 years - Minor Group: 632, 633
within the last 3 years

Language any NOC: CLB 5 (speaking + listening)

NOC 0, A: NOC B:
(English or CLB 7 CLB 4 (reading + writing)
CLB 7 CLB 5
French)

Qualification secondary education certificate of

qualification
FSW entry grid (67/100): in NOC from 1 year
(age, education, a Canadian full-time
language, work authority job offer
experience, job offer,
adaptability)

Canadian Experience Federal Skilled Worker Federal Skilled Trades

Class (CEC) Program (FSWP) Program (FSTP)

Express Entry pool

Source: OECD Secretariat.

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Step 2: The Comprehensive Ranking System

Once an interested individual has met the minimum requirements for one of the
federal programmes, they are able to complete their profile and enter the Express
Entry pool. Based on the information provided, the Comprehensive Ranking
System (CRS) automatically calculates each applicant’s individual CRS-score.

Table 2.3. Total points allocation in the Comprehensive Ranking System

Applicant with spouse of Applicant without

common-law partner spouse of common-law
partner
Core / human capital factors 460 points 500 points
Spouse or common-law partner factors 40 points -
Skill Transferability factors 100 points 100 points
Additional points 600 points 600 points
Total max 1 200 points 1 200 points

A candidate can obtain a maximum of 1 200 points.14 As shown in Table 2.3,

applicants who apply without a spouse or common-law partner can earn up to
500 points for core and human capital factors such as education, official language
skills, age and Canadian work experience. Those who apply with a spouse or
common-law partner can earn up to 460 points for their own core and human capital
factors, and up to 40 for those of their partner (excluding for age). In addition, the
system assigns up to 100 points for so-called “skill transferability” factors. Finally,
the CRS allocates up to 600 points for other factors, such as 50 for a valid15 job
offer (200 in case of a senior management NOC 00 position), up to 30 each for
French language skills and post-secondary education in Canada, 15 for a Canadian
sibling16, and the full 600 points for a provincial nomination. The maximum points
within each of the three sub-categories (core, skill transferability, other) are an
upper limit, so that the grand total cannot exceed the mentioned 1 200 points.

Core and human capital factors

Table 2.4. Points for core and human capital factors in the CRS

Applicant with spouse of Applicant without

common-law partner spouse of common-law
partner
Age (principal applicant) 100 110
Level of education (principal applicant) 140 150
Official languages proficiency (principal applicant) 150 160
Canadian work experience (principal applicant) 70 80
Level of education (spouse or common-law partner) 10 -
Official languages proficiency (spouse or common-law 20 -
partner)
Canadian work experience (spouse or common-law partner) 10 -
Total max 500 500

A key innovation in the introduction of EE has been that extensive study and
evaluation of previous systems and the determinants labour market outcomes of

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80  2. PERMANENT LABOUR MIGRATION

immigrants in Canada preceded and informed the design of the CRS. Both the short-
term and long-term outcomes were studied in this context. One such study
informing the CRS found that language and Canadian work experience are the best
predictors of earnings in the short term but education and age at landing are the best
predictors in the long term (Bonikowska, Hou and Picot, 2015[10]). The core and
human capital factors reflect these findings (Table 2.4). They include points for age,
level of education, official language proficiency and Canadian work experience.17
Individuals18 between 20 and 29 years of age receive the maximum of 110 points
for the age factor. For older applicants points decrease by five or six points per year,
until individuals aged 45 years or older do not receive any points for this factor
anymore. Children under the age of 18 receive no points and young adults at age
18 receive 99, those aged 19, 105 points, respectively. This assignment follows the
rationale that younger age at arrival positively affects long-term economic
integration outcomes, and that the future aggregated discounted net fiscal impact of
younger people is higher but that very young individuals still require further
education.
In addition, the CRS awards up to 150 points for education. Canadian and overseas
educational attainment grant the same number of points within this core set,
although there are bonus points for Canadian qualifications in the “other” set of
factors. In order to be valid, an IRCC-designated organisation has to issue an
Educational Credential Assessment. In order to receive the highest number of
available points, individuals need to have a doctoral level university degree (PhD).
Lower levels of formal education grant lesser points. For instance, a bachelor degree
grants 120 and a secondary diploma (high school graduation) 30 points.
Proficiency in the official languages, English and French, is an important predictor
of labour market outcomes in the long-term. The CRS-score allots a maximum of
136 points for proficiency in the first official language, and an additional maximum
24 points for knowledge of the second official language. A CLB/NCLC level of
10 or more in each linguistic capability (reading, writing, listening and speaking)
grants the maximum points and anything at or below CLB/NCLC level 4 (which is
the lower bound for admission to the pool) grants no points. Language requirements
for skilled labour migration are common across OECD countries. However, the
Canadian system is particularly refined, as no other system awards points for
language both along a seven-step scale while differentiating between the four
linguistic abilities (reading, writing, listening and speaking). In New Zealand,
language skills above the required pass mark to enter the pool do not result in a
higher overall score, while the Australian system awards points only along a three-
step scale.
Work experience in Canada can earn up to a maximum of 80 points under the core
factor. Individuals having worked at least for one year full time in Canada receive
40 points, and points increase by years of additional Canadian work experience. For
five years or more, the maximum number of 80 points is granted. Foreign work
experience is not a core factor – in contrast to the FSW grid – and grants points only
under the skill transferability factors.

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Points for spouses and common-law partners

A further unique feature in the Canadian system is that there are two separate
calculations in the CRS for applicants with spouses/common-law partners and those
without. If applicants want to bring their spouse or common-law partner with them
to Canada as accompanying family in the economic class, they thus need to provide
details of their level of education, language proficiency and Canadian work
experience, i.e. for the same core factors as for themselves with the exception of
age. Applicants can receive up to 40 points for their spouse/common law partner.
Applicants who want to bring their partner to Canada need to provide this
information even if their partner reduces their points score relative to a single
application. An applicant’s spouse or partner might not want to join the applicant
and immigrate to Canada. In this case, the CRS assesses the applicant as if he/she
does not have a partner. Likewise, if the spouse or partner is a Canadian citizen or
permanent resident, applicants earn points as if they do not have a spouse or partner.
At the beginning of 2019, the maximum contribution of spouses and common-law
partner points – assuming a CRS-score of 441 as the median pass mark in the
second half of 2018 – is 9% of the pass mark. The new calculations differ from the
pre-EE system, where principal applicants earned maximum 10 points for
adaptability, which could optionally include qualifications and experience of
spouses. As such, spouses could add 15% of the total pass mark (10 points out of
67) but principal applicants bringing their spouse could also achieve these points
by other means such as previous studying or working experience in Canada.

Figure 2.5. Federal Skilled Worker Program, principal applicants, and spouses and
dependants, 2005-17

Principal applicants Spouses and dependants Ratio (SD/PA)

70000 2.5
60000
2
50000
40000 1.5

30000 1
20000
0.5
10000
0 0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: OECD Secretariat calculations based on data from IRCC.

In this context, it is of interest to investigate whether EE had an impact on the

composition of applicants – i.e. whether applicants under EE are more likely to be
single, and/or whether married labour migrants under EE are more likely to resort

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82  2. PERMANENT LABOUR MIGRATION

to subsequent family reunification rather than bringing them along. While between
2005 and 2014, the ratio of permanent principal labour applicants landing under the
FSW and the number of accompanying spouses and dependants has been constant,
since the introduction of EE there has been a sharp decline in the share of the latter
(Figure 2.5). Note, however, that it is not clear whether this relates to changes in
selection procedures, such as the CRS-score, changing characteristics of the
applicants themselves, such as a younger age of the principal applicants (as younger
people are less likely to have family), or a decision to exclude spouses and
dependants on the permanent residence application. Indeed, in parallel EE also
favours younger candidates (both by strengthening the importance of age as a
selection criterion and by no longer rewarding long previous work experience), and
the average age has indeed declined (see next section).
Whilst the bulk of principal applicants are men, it is noteworthy that immigrant
women in Canada are the highest-educated among all immigrant groups (regardless
of gender) in the OECD, with more than 60% having tertiary education (OECD/EU,
2018[11]). At the same time, during the ten years prior to the introduction of EE,
only around 35% of principal labour migrant applicants were women, and this share
rose only slightly with EE, to 38% (IRCC, 2018[12]). This suggests that not only
female principal applicants selected themselves, but also those accompanying
partners or migrating under family streams tend to have a high level of education.
Within the partner points, language is key – accounting for half of the total (see
Annex 2.A for an overview of the CRS). In New Zealand, spouses of applicants
have to prove the same language levels as the principal applicant. Other spousal
skills can add up to maximum 40 additional points to the EOI score: 20 for high
education levels, at the Master’s or doctoral level, and additional 20 points for (pre-
arranged) skilled employment in New Zealand. This is a maximum of 25% of the
currently effective selection mark of 160 (see Table 2.5 below). These points do not
affect the amount of points the principal applicant can receive, i.e. they are an add-
on. Likewise, in Australia, applicants can earn up to five additional points for
partner skills provided their partner meets the same eligibility criteria as themselves
(language, age, assessed occupation on occupation list) which is 7% of the currently
effective selection mark of 70 points.

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Table 2.5. Points distribution in EOI systems

Shares of factors for maximum available points and effective pass mark during the second half of 2018.
Share of maximum points Share of effective pass mark
CAN CAN CAN CAN
(without (with AUS NZL (without (with AUS NZL
spouse spouse) spouse spouse)
Language 18 17 17 0 36 34 29 0
Language ability in first language 16 15 17 0 31 29 29 0
Language ability in second language 3 3 5 5
Education 21 19 26 27 41 39 43 53
Academic qualifications 17 16 17 23 34 32 29 44
Additional points for academic qualification 3 3 9 5 7 7 14 9
in country
Age 13 11 26 10 25 23 43 19
Work experience 9 8 22 24 18 16 36 47
Work experience abroad 13 16 21 31
Work experience in country 9 8 17 3 18 16 29 6
Work experience in area of absolute skills 5 9
shortage
Professional year (certain occupations) after 4 7
studies
Employment 23 23 0 26 45 45 0 50
Skilled job offer/current employment in 23 23 16 45 45 31
country
Qualified for/job offer in an area of absolute 3 6
skill shortage (NZL)
High paid job offer/current employment in 6 13
the country
Certificate of qualification in trades 6 6 11 11
occupation
Close family 2 6 4 13 3 12 7 25
Socio-demographic characteristics of 5 4 13 9 7 25
spouse/partner
Sibling 2 2 3 3
Skill transferability 11 11 23 23
Other factors 3 3 4 0 7 7 7 0
Maximum Points / Effective pass mark 875 875 115 310 441 441 70 160

Note: For comparability purposes, the table excludes regional elements: 600 points in Canada,
30 points in New Zealand and five points in Australia. Effective pass mark in Canada refers to the
median pass mark during the second half of 2018. In New Zealand and Australia to the selection
mark in the second half of 2018. The total of the sub-item (marked bold) is the maximum under the
respective category.
Source: OECD Secretariat.

In this context, it is important to note that in Canada, spouses and dependants – like
all other migrants – are eligible to free (and in principle unlimited) language training
which is the key part of the settlement services provided by Canada.19 In Australia,
which also has free English language training for most new arrivals in need –
subject to certain conditions – there is a higher visa fee (around AUD 5 000,
depending on the category) for spouses and dependants who do not have functional
English. Similar provisions exist in New Zealand, where persons included in the

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application who are aged 16 and older have to either meet the same minimum
requirements as the principal applicant, or to pre-purchase English tuition. This can
range up to NZD 7 000 (OECD, 2014[8]). Between 1995-98, New Zealand had a
language bond, requiring spouses and dependants to pay a certain amount that was
reimbursed if they managed to acquire the required minimum level of English
language mastery within a year of arrival.

Skill transferability points

One innovation of the CRS in Canada is to include skills transferability factors.
Skills transferability factors acknowledge interaction effects among several
selection factors. For instance, research has shown that high education, especially
foreign qualifications, tends to be largely discounted at the Canadian labour market,
unless the migrant at the same time has a good official language knowledge.
Likewise, foreign work experience has been almost completely discounted in
Canada in the past, unless combined with proficiency in official languages
(Bonikowska, Hou and Picot, 2015[10]). Indeed, foreign work experience does not
grant points in the CRS without either knowledge of official languages or prior
Canadian working experience. Awarding such points for interactions is unique to
the Canadian system.
One of the interactions credits education and the other foreign work experience
(Table 2.6). Both grant extra points if a candidate simultaneously has a certain
language proficiency or Canadian work experience. In addition, a certificate of
qualification for trade occupations grants points, provided a certain level of
language skills. In total, five such pairs of skill transferability exist with different
combinations of factors. The maximum points for each interaction are 50 and the
total from all interactions cannot exceed 100 points.

Table 2.6. Skill transferability points in the CRS

Language One year or Language Points

Skills more of Skills maximum
(CLB 7 or Canadian work (CLB 5 or
more) experience more, one
below 7)
At least post- 13, 25, 50 13, 25, 50 Max. 50
secondary programme
One year or more of 13, 25, 50 13, 25, 50 Max. 50
foreign work
experience
With a certificate of 50 25 Max 50
qualification (FST)
Maximum points for 100
Skill Transferability

To receive the full number of skill transferability points, a 3-year higher educational
degree (such as a bachelor’s degree), strong (CLB 9) language skills, and either
three years of foreign or two years of Canadian work experience are necessary.

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Lower qualifications and experiences grant already - albeit fewer – points, whereas
additional years of work experience beyond the ones mentioned do not add points.
Individuals applying under the FST class receive up to 50 points for a certificate of
qualification, provided simultaneous good language skills. Depending on the
occupation, only provinces, territories and specific federal bodies can issue a
certificate of qualification. Applicants must have passed a certification exam to
have their training, trade experience and skills recognised, usually from a
province/territory. Applicants may also need experience and training from an
employer in Canada.
As noted, the CRS grants points for foreign work experience only given high
language skills and/or simultaneous Canadian work experience. Otherwise, foreign
work experience does not grant any points for the final CRS-score. Here, the
Canadian system differs from peer systems in Australia and New Zealand. In both
countries, foreign work experience grants points irrespective of language skills and
working experience in the country. In order to achieve the maximum number of
points for this category, individuals have to prove eight (Australia) or ten
(New Zealand) years of skilled work experience, respectively, whereas in Canada
the maximum number of interaction points is granted for three years of foreign work
experience already.

Additional points
The CRS awards up to 600 points for so-called “other factors”, which is 50% of the
total possible CRS-score. These include 50 points for arranged employment in a
skill Level 0, A or B occupation, (200 in a NOC 00 occupation), and up to 30 points
for post-secondary education in Canada. Applicants receive the total of 600 points
for a provincial or territorial nomination. While a job offer typically reflects
demand, it also reflects human capital as substantiated by employers in the context
of their specific immediate needs. Provincial nominations can address both demand
and supply depending on the objectives of the EE-linked programme of the province
or territory. The 600 additional points provided by a provincial or territorial
nomination ensure selection in the next ITA round. Changes to the CRS in June
2017 introduced additional 15 points for a sibling living in Canada who is a citizen
or permanent resident, and up to 30 points each for Canadian post-secondary
education and for strong French language skills with simultaneous fair English
language skills.

Key issues in the functioning of Express Entry

Control and flexibility

IRCC controls the timing and magnitude of new application intakes…

Based on its multi-year immigration levels plan, IRCC defines the total number of
invitations in each round. In its first two years of operation, invitations were limited
due to the parallel processing of eligible backlog applications that were filed under

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the previous system. Over the first months of 2017, when the pre-Express Entry
backlog for the FSWP and the CEC was almost depleted, ITA round sizes were
increased to create a working inventory of applications. IRCC then somewhat
reduced the size of the ITA rounds but since 2018 increased the total intake again,
to ensure a steady application submission for meeting the targeted processing time
for Express Entry applications (Figure 2.6).

Figure 2.6. ITA issued per Express Entry draw and required pass mark, 2015-2018

ITA issued (left) CRS pass mark (right)

4500 1000
4000 900
3500 800
3000 700
600
2500
500
2000
400
1500 300
1000 200
500 100
0 0
2015 2016 2017 2018

Source: OECD Secretariat visualisations based on data from IRCC.

…including programme-specific draws

Express Entry allows IRCC to conduct programme-specific draws from the pool.
In such programme-specific invitation rounds, the minimum CRS-score to receive
an ITA can be considerably higher (for PNP, due to the additional 600 points for
provincial nomination) or lower (for FST) than in the general biweekly Express
Entry draws. Apart from these draws, the pass-mark for selection has been
remarkably stable, especially in 2018.
As the Express Entry pool is growing, many applicants have the same CRS-score.
Hence, inviting all applicants at the pass mark could results in a number of ITA
issued considerably higher than planned by the ministry. Against this backdrop, in
June 2017 IRCC announced to change its previous policy to invite all candidates
who meet the pass mark. The system now ranks applicants with the same CRS-
score based on the date of submitting their EOI in the pool. Australia applies the
same rule while New Zealand invites all applicants in the case of tied scores.

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The floating pass mark (CRS-cut off) suggests a system that responds to
changing parameters
Figure 2.7. How the CRS-cut off score changed during 2018
ITA issued (left) CRS-cut off (right)

21 14 14 14 21 12 16 14 14 14 21 12 16 14 14 14 14 14 14 12 14 16 14 14 7
4000 460
3800
455
3600
3400
450
3200
3000 445
2800
440
2600
2400
435
2200
2000 430

Note: On May 30, 2018, IRCC invited 700 applications under the PNP and FST classes with a cut-
off of 902 and 288. On September 24, 2018, IRCC invited 400 applications under the FST class with
a cut-off of 284. These draws are not shown in the graph.
Source: OECD Secretariat visualisations based on data from IRCC.

In 2018, apart from two programme-specific draws, the government invited in each
round between 2 750 and 3 900 candidates to submit an application and the
resulting CRS cut-off was between 439 and 456 points (Figure 2.7). During 2018,
the government did not introduce any changes to the CRS. Nevertheless, the CRS-
score needed to receive an ITA varied somewhat. It partly reflects the changing
composition of the pool as individuals enter and leave, but also the size of the
current draw and the time lapse since the previous draw (and its size). In fact,
whenever the time between two rounds of regular invitations is three instead of the
usual two weeks, the cut-off in the next draw is slightly higher. In turn, where the
period between two draws is shorter, the cut-off tends to be lower. Likewise,
successive periods of rather large draws tend to be associated with somewhat lower
pass-marks.
This floating pass-mark contrasts somewhat with the operation of the SkillSelect
system in Australia and the EOI-system in New Zealand. New Zealand sets a
minimum pass mark to enter the pool (100 points) and the admission mark for each
draw depends on government priorities. In 2018, only those with a score above a
certain threshold (160 points) received invitations to apply while, until October
2016, those between two thresholds (100 and 140 points) were ranked by point-
scores and preference were given to applicants with a job offer. In Australia,
SkillSelect issues invitations automatically to the highest-ranking EOIs, in
descending order as in Canada, but only until a pre-defined limit subject to annual
occupation ceilings. What is more, the pass-mark is rather stable. In Canada,
applicants are continuously invited and no occupation limits exist. Hence, interested

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applicants have a high incentive to acquire all possible points to achieve their
highest CRS-score for any possible round.

Ministerial Instructions allow for flexibility in migration management, but

should be used parsimoniously
In the over four years of Express Entry operation, IRCC has made several changes
to the calculation of the CRS-score. In November 2016, IRCC reduced the
previously large number of 600 points awarded for a valid employment offer to
50 points in a NOC 0, A or B job (and 200 for senior management positions, NOC
00).20 In addition, thereafter applicants received up to 30 points for post-secondary
education in Canada. These policy changes impacted considerably on the
composition of the intake. After the 49th draw, when changes applied, the cut-off
score declined considerably. In fact, the median pass mark before these changes
came into effect was 472 and thereafter until the end of 2018, it was reduced to
441 points, reflecting a shift from a system that largely privileged labour demand
to a system that remains largely supply-driven. Whereas in 2016 one-third of
EE-invited candidates had a job offer, in 2017 fewer than 10% did (IRCC, 2018[13]).
Other changes introduced in June 2017 granted 15 additional points for a siblings
living in Canada and up to 30 additional points for strong French language skills.
Those changes were associated with a rise in CRS-score needed to receive an ITA
in the first round implemented from 413 to 449. Since then until the end of 2018,
the pass mark has remained relatively stable at around 440 to 450 points.
As such, the system provides flexibility to IRCC via Ministerial Instructions to
change selection criteria (point allocations) without requiring major legislative
changes. In the case of such announced changes, the CRS-score of individuals
already in the pool updates automatically applying new rules of calculations.
Applicants can also add additional information to receive further points.
All considered, the system is thus able to alter the composition of invited applicants
quickly and to respond to changing priorities. On the other hand, this implies that
the possibility to award bonus points for characteristics and attributes of migrants
needs to indeed respond to solid economic and/or demographic evidence, to avoid
that they are unduly affected by possible interest group pressure. What is more, a
large number of potential bonus points risks significantly altering the result of who
is selected and who is not. Considering the long-term objective of the system to
balance human capital with other characteristics, and the fact that a large part of the
pool is around the pass-mark (see Figure 2.9), micro-management via Express
Entry is a risk that needs to be avoided.

Selecting those with the highest potential to succeed

Early labour market outcomes of Express Entry immigrants are favourable

One year after admission in 2015, 86% of all economic principal applicants –
including those who were admitted outside of EE – had reported employment
income. This was a higher share than in the previous ten years. In fact, with the

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exception of 2008 (the year of the economic crisis), the share has constantly
increased since 2005. Likewise, the reported income tends to be higher than among
prior cohorts of admission, although this was an ongoing trend observed for many
years already (Figure 2.8).

Figure 2.8. Median earnings in CAD of labour immigrants by years since admission
(landing) and arrival cohort
2010 2011 2012 2013 2014 2015 2016
45000

40000

35000

30000

25000

20000

15000
0 years since 1 years since 2 years since 3 years since 4 years since 5 years since 6 years since
admission admission admission admission admission admission admission

Note: Median of those with income (wages, salaries and commissions).

Source: OECD Secretariat calculations on the basis of data from Statistics Canada.

Due to the time lag between immigrants landing, starting to work and filing income
tax declaration, only limited analyses on the labour market results of recently-
arrived immigrants under EE are possible. Data from the 2016 IMD – using labour
immigrants from 2015 and 2016 – suggests that the median earnings of labour
immigrants (FSW, FST, CEC, PN) landing via EE are higher than among those
coming from outside EE.
A survey from IRCC compared the outcomes of EE-selected labour immigrants
who were admitted between 2015-18 with those who were non-EE-selected (i.e. the
previous backlog) but admitted during the same period. It shows that twelve months
after admission, 87% of EE-selected respondents had secured a first job, compared
with 82% for non-EE-selected respondents. What is more, the average and median
self-reported income of EE-selected immigrants was higher compared to non-EE-
selected respondents. This was true for both the first job in Canada as permanent
resident and the current job at the time of the survey for those in employment
(IRCC, forthcoming[14]).

EE prioritises those with the highest skills and other attributes linked with
lasting integration
In contrast to the pre-2015 system, Express Entry ranks eligible candidates by their
skills level, choosing those with higher skills rather than those with lower skills,
and ensuring that the highest-skilled get chosen first. While it is too early to actually

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compare outcomes pre- and post-EE, by its very design, it is a clear improvement
over the previous system in this respect.
Based on the minimum criteria outlined for pool eligibility which were the same as
under the previous system without such ranking, a FSW applicant needs a minimum
CRS-score of 98 points, a CEC applicant 64 CRS-points and a FST applicant
74 CRS-points. Hence, given the minimum requirements, a CRS-score of 64 points
is sufficient to enter the EE-pool. This is less than 15% of the median pass mark for
selection in non-programme specific draws. Even for FSW, the programme with
the most restrictive pool entry requirements, this results in only 22% of the points
required for the median pass mark in the second half of 2018 (441). In
New Zealand, interested candidates for permanent skilled migration must achieve
a score of 62.5%, i.e.100 points out of a current pass mark of 160 to submit an
application. In Australia, the eligibility score to apply under the Skilled Independent
visa is 65 points, a full 93% of the score needed to be selected in the second half of
2018, which was 70 points (albeit it was higher for certain occupational groups).

Express Entry operates a large pool of skills

Figure 2.9. Applicants invited to apply by ITA in 2017/18 and EE-pool snapshot of
August 2018
40000
2017 2018
35000
901 - 1200

801 - 900 30000

701 - 800 25000

601 - 700 20000

501 - 600 15000

451 - 500
10000
401 - 450
5000
< 400
0
0 10000 20000 30000 40000 0-300 301-350 351-400 401 - 440 441 - 1200

Source: OECD Secretariat calculations based on data from IRCC.

In 2017 and 2018, 80% of invited and subsequently landed immigrants under EE
had a CRS-score between 400 and 500 points, and 14%, virtually all of them
provincial nominees, a CRS-score over 600. Applicants who do not receive an ITA,
or decline an offer, remain in the pool for up to twelve months (Figure 2.9). Invited
applicants who do not react to an invitation to apply are withdrawn from the pool.
The snapshot of the pool of active candidates in August 2018 shows that about a
third of applicants in the pool have a CRS-scores between 401-440 points,
suggesting a reasonably high qualification level to being picked in future draws
(Figure 2.9). However, about a third of applicants have a CRS-score below
350 points. The system will only select these candidates if they are eligible for

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programme-specific FST draws, or if they manage to obtain a Provincial

Nomination.
During the first three years of the new systems operation, only about one-third of
profiles in the Express Entry pool received an ITA and submitted an application for
permanent residence in Canada. A recent analysis of the Australian labour
migration system shows that in SkillSelect on a monthly basis, around two-thirds
of those entering the pool (submitting an EOI) receive an ITA. Compared to this
peer system, Express Entry is thus less selective in its first step (the Expression of
Interest) as only minimum requirements apply, in the second step however,
relatively fewer candidates receive an ITA.

The reason for continuing a Federal Skilled Trades Program is not evident
Created in 2013, the FST provides a pathway to permanent residence for individuals
in a selected group of the skilled trades. These are occupations in industrial,
construction, maintenance, agriculture, processing, transport and manufacturing
trades, as well as for cooks, chefs, bakers and butchers. Applicants need to meet the
requirements for their skilled trade as defined in the NOC, and either a valid job
offer for full-time employment for at least one year, or a certificate of qualification
in their skilled trade issued by a Canadian authority. In spite of providing a lower
human-capital threshold access to permanent residency than CEC and FSW, the
programme has taken off only very slowly, already before the introduction of EE.
One reason for this is the fact that some skilled trades tend to be regulated
professions. Therefore, individuals often need to go to their intended
province/territory of residence to be assessed for their trade.
After over six years of operation of the FSTP, it is not clear why Canada runs a
federal immigration programme for labour immigrants in this narrow range of
occupations many of which require certification at the provincial/territorial level.
Canada’s latest Occupational Projection System (COPS 2017-2026) predicts labour
demand and supply to be broadly balanced in most of these respective occupations
at the national level. Indeed, some occupations such as cooks (NOC 6322) are even
expected to face labour surplus conditions (ESDC, 2017[15]).
Express Entry, a system designed for managing high-skilled migration, does not
include applicants under the FSTP in regular selection draws, due to their relatively
lower human capital endowment and resulting lower CRS-score. After the decrease
of points awarded for a valid job offer – from 600 to 50 points following November
2016 – candidates in the EE-pool who were (only) eligible for the FSTP have never
been invited in a regular round of invitation.
What is more, other entry paths are available for immigrants in such occupations
but not under this programme. Qualifying individuals with a similar skill set but at
least one year of Canadian work experience are always invited under the CEC, and
there is always the possibility of provincial nominiation under the PNP (see
Chapter 4).

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Given their relatively low skills, applicants under the FST programme are not
invited to apply anymore in regular EE draws, in 2017 only 906 FST and in 2018
only 900 FST were invited in special draws. In these years, only 345 and 280 of
individuals invited to apply submitted an application for permanent residence,
suggesting that many do not land.
Within FST, the largest group intended to work as cooks (30% and 34%), which
raises the question of appropriate targeting, given that this is an occupation in which
no future labour shortages are expected. What is more, in 2017, EE admitted over
550 individuals under its other streams (CEC, PNP and FSW), intending to work as
cooks, and in 2018 this number was over 650. This also suggests that other channels
such as CEC or provincial nomination in EE are in fact used by the same target
group.
Indeed, provinces and territories that need qualified labour migrants in certain
trades can search the pool and invite individuals via enhanced nominations in the
EE-pool. In fact, the only province that still admits a considerable share of its
economic immigrants under the FSTP is Alberta: 4% of its intake of 2018 (until
October). More than half of all federal skilled traders admitted via EE since its
introduction intended to settle in that province. At the same time, Alberta is the only
province that has not yet admitted any provincial nominees via EE and only recently
introduced its EE-linked PN stream.21

A universal pool entry grid, based on the core CRS factors, would set
minimum standards
As a crucial distinction to previous selection, the CRS ranks all candidates against
one another in the EE-pool.22 The main difference between applications under the
FSW, FST and the CEC is thus their pool entry eligibility23. Future Provincial
Nominees under EE have to meet one of the entry requirements of one of the three
federal programme. The Canadian Experience Class (CEC) was introduced in 2008
to help address substantial application backlogs and waiting times in the FSW,
allow for a transition of individuals already working in Canada as well as to increase
responsiveness to labour needs (IRCC, 2015[16]). Given that Express Entry favours
onshore transition and has eliminated backlogs, the continuous need of a CEC is
thus not clear. A further objective of the CEC was to provide a pathway for
international graduates, who now receive bonus points in the CRS for Canadian
study experience.
FSW applicants go through an entry point grid while CEC (and FST) applicants do
not. There are some inconsistencies between the FSW-entry grid and the CRS in
the EE-pool. For instance, a 19-year-old applicant receives the maximum number
of age-points in the FSW-entry grid, but less than maximum in the CRS. In turn, a
45-year-old applicant receives 0 (out of 110) points for age in the CRS, but still 2
(out of 12) points in the FSW-entry grid. Further, the FSW-entry grid rewards up to
six years of foreign work experience. By contrast, in the CRS, only three years of
foreign work experiences already allow for the maximum number of points

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available, and these points are only granted given at least one of two other factors:
official language knowledge and/or Canadian work experience.
Regarding language knowledge, CEC and FSW admissions (excluding Quebec) in
2017 are very similar (98% and 97% only speaking English). In terms of age
structure, individuals admitted under the CEC in 2017 are younger than those under
the FSW. A full 58% of CEC-admitted are below the age of 30. Admissions under
the FSWP fall mostly in the age-range 30 to 44 (61%). In addition, the majority of
immigrants admitted under the CEC intended to work in a NOC B occupation, while
the majority of FSW admissions intend to work in a NOC A occupation. Against
this backdrop, it is not clear why CEC applicants are not subject to the same
minimum requirements as FSW to enter the pool.
Such a revised new entry points grid for all skilled migration, based on the core
factors of the CRS-grid, would also enhance transparency. The core criteria of the
CRS (age, education, languages and Canadian work experience) could provide the
basis for such a universal points grid for all candidates in the first stage (to submit
an EOI). The entry grid should only allow those candidates to enter the pool who
have an assessed minimum standard of formal education – for instance high school
education – and a language level of “adequate intermediate ability” (CLB7).
This is a higher language ability than currently required for Skill Level B applicants
under CEC (and FST). However, language proficiency at arrival is a central skill
portability factor and predictor of labour market outcomes (Ferrer, Green and
Riddell, 2006[17]; Bonikowska, Green and Riddell, 2008[18]; OECD/EU, 2014[19]).
For a successful transfer of cognitive “high skill” abilities, a higher language
proficiency is more important than for the transfer of manual skills. Hence, a more
proficient language requirement offers some protection for high-skilled immigrants
against being pushed to take up employment in manual occupations for which they
are not qualified (Imai, Stacey and Warman, 2018[20]). What is more, host-country
language ability24 seems to be the only form of human capital that is beneficial to
both those who do and those who do not work in the same occupation as before
migrating (Warman, Sweetman and Goldmann, 2015[21]). As mentioned, CLB 7
(equivalent to an IELTS 6.0) would be the same level as required for the skilled
independent class in Australia, and a still higher level of language ability is required
for the Skilled Migrant Category of New Zealand (equivalent to IELTS 6.5).
The requirement of one year of skilled work experience in Skill Level B, A or zero
occupation prior to permanent migration is plausible. It allows for a genuine
assessment of immigrants intended occupation as many seem interested in
switching jobs when immigrating and “upgrading” from a lower-skilled pre-
immigration job to a higher-skilled upon landing in Canada (Warman, Sweetman
and Goldmann, 2015[21]). However, this requirement somewhat prevents
international graduates from Canadian universities – with the exception of those
graduating from an Atlantic educational institution who have access to the Atlantic
Immigration Pilot – to qualify for permanent federal immigration programmes
immediately after graduation without any work experience, as off-campus work
experience does not count towards this requirement. Australia waived the work

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94  2. PERMANENT LABOUR MIGRATION

experience requirement for students completing qualifications at an Australian

educational institution, effectively placing greater weight on Australian
qualifications in the points system.
Given harmonised pool eligibility criteria, and the recommended termination of the
FST class, a merger of the remaining skilled immigration categories CEC and
FSWP could be considered. In fact, the 2017 and 2018 multi-year Immigration
Levels Plans already acknowledge the overlap between the three main Express
Entry categories. It does no longer set CEC, FSW and FSTP-specific admissions
ranges. Instead, it uses one category: Federal High Skilled (IRCC, 2017[22]; IRCC,
2018[23]).

Landing depends on the migration class rather than on the CRS-score

A key question is whether there is some kind of selectivity among those who are
invited to apply and those who actually do so. In Australia, those with higher points
scores turn out to be less likely to submit an application than those who have lower
points and receive an ITA (OECD, 2018[5]).
Looking merely at the points, this pattern seems opposite in Canada. Only 12% of
individuals that received more than 600 points in the CRS-score did not submit an
application.25 Among those scoring between 400 and 499 points, this share is 25%.
However, these numbers from Canada are not easily comparable to other systems.
The reasons being that individuals under the PNP and CEC programme often have
previous ties to Canada and many are in fact already residing in the country. This
affects both, their CRS-score as well as their probability to land in Canada as
permanent residents. When looking at the FSW category alone, 26% of those who
received an invitation to apply did not submit an application. The respective shares
are lower for the CEC (19%), the FST (15%) and the PNP (13%).

Low points for (foreign) work experience results in younger applicants

Given the relatively low number of points – compared to the FSWP – awarded by
the CRS for work experience and the high number of points for (lower) age, one
would expect recent immigrants selected via EE to be significantly younger than
those selected prior to 2015. Data from admissions under the CEC and FSWP,
excluding those admitted to Quebec, confirm this expectation. In 2017, the majority
of admissions under these two classes was younger than 30 years of age (51%).
Another 46% were between 30 years and 44 years old, and only about 3% were
45 and older. Prior to EE, in 2014, admissions under these classes were mostly aged
between 30 and 44 years (60%), with 30% younger and about 10% older.

Points for Canadian work and study experience favour onshore selection
Until October 2018, most applications who received an ITA under EE and
subsequently submitted an application were part of the Federal Skilled Worker 44%
(73 593) and the Canadian Experience Class 40% (68 140). By contrast, only about
13% were issued to Provincial Nominees (21 635) and just 2% applied under the
Federal Skilled Trades Program (3 746). In Express Entry a relatively large share

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 2. PERMANENT LABOUR MIGRATION  95

of applicants arrive via the CEC stream compared to pre-EE admissions (Chapter
1). This change reflects the points allocated for Canadian work (and more recently
study) experience in the CRS as well as the new sorting hierarchy within Express
Entry discussed previously. Indeed, Canadian work and study experience has
become a major advantage for permanent selection under EE (Figure 2.7).
The CRS-score awards, since November 2016, up to 30 extra points for Canadian
education credentials and in 2017, 45% of applicants invited to apply for permanent
residence under EE claimed such points (IRCC, 2018[13]). This is a sharp increase
from pre-EE: In 2014, the share of labour immigrants landing outside of Quebec
who had a previous study permit was only 24%. In other words, now almost half of
all those selected in EE have Canadian education. A Canadian two-year Master’s
degree with the minimum required one year of foreign skilled work experience
provides more points than a foreign master’s degree and any amount of foreign
work experience. For Canadian work experience, the CRS awards points twice: in
the core factors as well as in the interaction factors (Figure 2.7)26. A foreign
Bachelor’s degree holder with just one year of Canadian work and no further
experience surpasses an otherwise similar applicant with the same educational level
and foreign work experience, regardless of the number of years of experience.
However, due to the interaction factors, this is not the case for applicants with a
foreign Master’s degree, where one year of Canadian work experience alone does
not grant more points than three years or more of foreign work experience.

Table 2.7. How the CRS values foreign and Canadian work and study experience
Applicant 28 years old, with English (CLB 9) and no French, applying without a spouse/common law partner

Foreign BA Foreign BA Foreign MA Foreign MA Foreign MA Foreign BA Canadian

and 3 years and 1 year and 1 or and 1 year and 3 years + 1 year of (2-year) MA
or more of Canadian* 2 years of of or more of foreign + and 1 year
foreign work work foreign work Canadian* foreign work 1 year of of foreign
experience experience experience work experience Canadian* work
experience work experience
experience
Core and 354 384 369 409 369 394 369
Human
Capital Points
No spouse or common-law partner points
Skill 75 38 75 50 100 76 75
Transferability
Points
Additional 30
Points
CRS score 429 432 444 459 469 470 474

Note: “BA” denotes one three-year or longer post-secondary credential. “MA” stands for a master’s
or entry-to-practice professional degree. *Canadian work experience during the previous
three years.
Source: OECD Secretariat calculations.

In 2018, the CRS cut-off score for invitation for permanent residence has mostly
been between 440 and 450 points. Hence, the table suggests that the current system
favours candidates with Canadian experience. Given the relatively large number of

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international students and temporary workers gaining relevant Canadian work

experience, this situation is likely to remain for the coming years. In fact, 49% of
all ITAs for permanent residence issued via EE in 2017 were for individuals who
were already residing in Canada. Total numbers almost doubled while the relative
share decreased from previously 64% in 2016 (IRCC, 2018[13]).
While no data exists on how study experience in Canada benefits long-term labour
market integration, immigrant’s source country education quality matters and
affects the return to education (Li and Sweetman, 2013[24]). The current system
requires an Educational Credential Assessment (ECA) only for those submitting an
EOI under the FSW, a potential imbalance as discussed previously. However,
everyone in the pool who wants to earn points for education needs an ECA unless
they earned a Canadian degree, diploma or certificate within the last five years.

Salary should be considered as a proxy for high-skilled work experience in

Canada
Research has shown that pre-landing skilled Canadian work experience is an
important factor for faster economic integration of landed immigrants (Hou and
Bonikowska, 2016[25]; Bonikowska, Hou and Picot, 2015[10]). The CRS currently
accounts for this by awarding points for the duration of Canadian skilled work
experience (NOC 0, A and B).
Currently, Canada uses the duration of work experience and the NOC as a proxy
for high-skilled employment. However, as the 2016 IMDB data shows, incomes
among individuals with pre-landing experience transitioning to permanent
residency vary considerably (Figure 2.10).

Figure 2.10. Share of labour migrants by earning groups, Express Entry onshore
transitions

2015 onshore 2016 onshore

25

20

15

10

0
0 > 10k 10k > 20k 20k > 30k 30k > 40k 40k > 50k 50k > 60k 60k - 70k 70k - 80k 80k - 90k 90k - 100k 100k +

Note: Labour immigrants admitted in 2016 might not have worked a full year yet. Numbers shown
hence might underestimate their earning.
Source: Statistics Canada, 2016 IMDB.

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At the same time, Hou and Lu (2017[26]) show that, for persons with prior Canadian
work experience, the payment received while working in Canada, rather than the
duration thereof, is the best proxy for future earnings. Several other OECD
countries also use the salary as a proxy for classifying high-skilled employment.
However, these generally refer to the wage offered (i.e. after landing). The most
prominent example is the European Blue Card Scheme that among other conditions
requires the applicant to receive a salary at least equal to the threshold set by the
individual Member State. Similarly, the Danish Pay Limit Scheme allows
applicants with a job offer and salary above a threshold to reside and work in the
country for an initial period of maximum four years. Applicants to New Zealand’s
Skilled Migrant Category Resident Visa can claim 20 additional points (12.5% of
the effective selection mark of 160) for a salary/salary offer above a certain
remuneration threshold27. Since August 2017, New Zealand also uses remuneration
thresholds as an additional means of defining skilled employment. The
United Kingdom also uses salary for classifying high-skilled jobs.
Moving to a salary reference, for example linked to the pre-application year of work
experience in Canada, would thus not be an unusual step to take. At the same time,
it would remove the somewhat arbitrary points allocation for the years of Canadian
work experience in the current system. Individuals applying without a spouse
receive already half of available points for Canadian work experience in the core
factors, currently 35 points, after only one year of experience, but the full number
of 70 points only after five years. At the same time, a number of steps should be
taken to ensure integrity. To account for different labour market conditions across
the country, the salary should be relative to where the experience was obtained
rather than absolute. For part-time work and recent graduates who would get lower
earnings, refined solutions would need to be developed.
The CRS allocates points for the duration of Canadian work experience a second
time in the skill transferability factors, but here the maximum number of interaction
points is available after two years of Canadian work experience. In contrast, the
total number of interaction points for foreign work experiences is possible to gain
after at least three years of foreign work experience.

Provinces can recruit directly from Express Entry while employers can use
the government online platform Job Bank
Express Entry operates a pool of pre-selected candidates who have already
undertaken a language assessment, and in the case of FSW, also an educational
credential assessment. Provinces and territories can access the pool directly to find
suitable candidates for regional immigration programmes. By contrast, employers
are not able to recruit candidates from the EE-pool directly. Instead, they can use
Job Bank, Canada’s online job searching and matching platform. They can also
search on other private sector recruitment services or co-operate with
provincial/territorial programmes (Figure 2.11).

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98  2. PERMANENT LABOUR MIGRATION

Figure 2.11. Schematic overview of the links between EE and Job Bank

Employer

Provincial
Job Bank Nominee
Express Entry Programmes
Pool
Private Sector
Job Boards
Provinces and territories
are able to recruit
Admitted applicants complete candidates from the EE
their online Express Entry system for their PN
profile and enter the pool. programmes to meet local
Matches are made
labour market needs
between cadidates and They can register with
employers through Job Canada's Job Bank and use Employers can continue to
Bank and / or Private private sector boards to find work with provinces and
Sector Boards. employment. territories.
The employer gives the EE-
candidate a job offer.
Invitation to
Apply

Job Bank is open to use for Express Entry profiles, but was designed as a matching
service for Canadian job seekers as a sort of “clearing house” for vacancies. The
platform is the result of merging an offer existing under the same name since 1980
(on-line since 1996) and the previous “Working in Canada” Website. Job Bank has
been operating since March 2014 and is free of charge.
Services on Job Bank include job searching, recruiting/hiring and matching. In
addition, individuals can explore careers and job market trends. According to a
telephone survey conducted at the beginning of 2016, Job Bank was the most
common place for job postings of employers with a Job Bank account. It was also
the most popular platform to search work among job seekers (40% of the total).
However, 40% of jobs in Canada are obtained through job seekers’ personal
networks. Respondents to the 2013 and 2014 Canadian Out-of-Employment Panel
surveys said that talking to others for searching jobs was second after searching on
the internet (ESDC, 2017[27]).
Recent immigrants who may not have well-established networks share similar
information needs with less experienced labour market participants. They may also
benefit from information available on Job Bank as regards to federal, provincial and
territorial regulatory bodies. While knowledge of the Job Bank’s job searching
services is generally high, many are less aware of the career planning and job
market information services it provides.
However, recent immigrants seem to be better informed than the general Canadian
public about these features. A full 71% of recent immigrants knew that Job Bank

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provides information about career planning and 69% on job market trends (ESDC,
2017[27]). The high level of awareness of Job Bank’s features is linked to the
mandatory registration for EE candidates on Job Bank until mid-2017. Until that
date, all EE-applicants needed to create a Job Bank profile if they did not already
have a job offer or a provincial/territorial nomination. After June 2017, the
registration with Job Bank became voluntary for applicants. Instead, it became
mandatory for recruiters in need of a Labour Market Impact Assessment (LMIA).
All employers must advertise on Job Bank as one of three required recruitment
methods in order to obtain a LMIA, a requirement discussed further in subsequent
parts of this review. IRCC should continue to communicate the value added of Job
Bank to new EE applicants, despite registration being voluntary now.
Similar to the current use of Job Bank in Canada, the manual matching system
SkillFinder in New Zealand is not automatically connected to the application
management pool.28 By contrast, in Australia until April 2018, employers could
search the pool of SkillSelect by occupation, qualification and English language
ability directly. However, Australia ceased this access in April 2018. What is more,
in contrast to Australia, where occupation lists and ceilings apply, the Canadian
system does not have such limits in place.

The current system prioritises skilled population growth over specific

occupational demand…
Express Entry admission requirements are not linked to specific “in-demand”
occupations, but rather to skilled work experience, defined as an occupation in the
categories 0, A and B of the NOC. The only exception is the FST programme, where
applicants need two years of prior work experience in an occupation belonging to
one of four major and two minor occupational groupings, all of which are Skill
Level B occupations.
With the November 2016 changes, which reduced the numbers of points for a job
offer in EE, the importance of pre-arranged employment for selection has
decreased. Whereas in 2016, one third of invited candidates had a job offer, in 2017
this was the case for less than ten percent. The EE-system is thus largely supply-
driven. Indeed, in the context of changing work environments and digital
transformation, not one occupational qualification but rather broad mix of skills that
allows for adaptation and lifelong learning are increasingly important (OECD,
2019[28]). Canada’s overall shift in immigrant selection from specific demand
towards broader human capital hence responds to some of the expected challenges
in the future of work, by selecting candidates who are expected to be able to work
across a range of different jobs (OECD, 2019[29]).
The changes also implied a shift in the occupational composition. In 2015, only
about a third of EE-admitted labour immigrants who stated an occupation intended
to work in a “professional job” (as opposed to “technical jobs and skilled trades”).
From 2016 onwards, this share increased to two-thirds in 2018. These occupations
typically require a university degree education. Data by broad occupation grouping
(2-digit NOC) suggest that the largest groups of intended occupations are in natural

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and applied sciences, followed by business and finance, while the share of Skill
Level B occupations in retail sales and service supervision decreased significantly
(Figure 2.12).

Figure 2.12. Distribution of intended occupation group and skill-level of immigrants

admitted under EE
Professional jobs and management occupations Business, finance and administrative occupations
Technical jobs and skilled trades Natural and applied sciences
Sales and service occupations
100 100
90 90
80 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
2015 2016 2017 2018 2015 2016 2017 2018

Note: Shares in percentages of intended occupations stated.

Source: IRCC. Admissions of Permanent Residents under Express Entry by Province/Territory of
Intended Destination and Intended Occupation (2-Digit NOC 2011)

Annual invitations issued under Express Entry display a very similar picture. In
2016, 2017 and 2018, the top three intended occupations of those invited to apply
were in the IT sector. Occupations in the sales and service sector, which were
among the top ten occupations in 2015 and 2016, were replaced in 2017 and 2018
by occupations in the business, finance and administration sector (Table 2.8). This
suggests that the current system – despite not being explicitly linked to shortage
occupations –selects more highly-skilled occupational profiles.

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Table 2.8. Most common occupations among invitations issued in percent, 2015-18

Rank 2015 2016 2017 2018

1 Food Service Information Systems Information Systems Software Engineers
Supervisors (8%) Analysts and Analysts and (and Designers) (7%)
Consultants (6%) Consultants (6%)
2 Cooks (8%) Software Engineers Software Engineers Information Systems
(4%) (6%) Analysts and
Consultants (6%)
3 Information System Computer Programmers Computer Programmers Computer Programmers
Analysts and and Interactive Media and Interactive Media and Interactive Media
Consultants (4%) Developers (4%) Developers (4%) Developers (4%)
4 Software Engineers Cooks (4%) Financial Auditors and Financial Auditors and
(3%) Accountants (3%) Accountants (3%)
5 Computer Programmers Food Service Administrative Administrative
and Interactive Media Supervisors (3%) assistants (2%) assistants (3%)
Developers (3%)
6 University Professors University Professors Professional Professional
and Lecturers (3%) and Lecturers (3%) occupations in occupations in
advertising, marketing advertising, marketing
and public relations and public relations
(2%) (2%)
7 Retail Sales Supervisors Graphic Designers and University Professors University Professors
(2%) Illustrators (2%) and Lecturers (2%) and Lecturers (2%)
8 Graphic Designers and Professional Financial and Financial and
Illustrators (2%) occupations in Investment Analysts Investment Analysts
advertising, marketing (2%) (2%)
and public relations
(2%)
9 Financial Auditors and Financial Auditors and Professional Professional
Accountants (2%) Accountants (2%) occupations in business occupations in business
management consulting management consulting
(2%) (2%)
10 Financial and Retail Sales Supervisors Advertising, Marketing Advertising, Marketing
Investment Analysts (2%) and Public Relations and Public Relations
(2%) Managers (2%) Managers (2%)
Other 62% 69% 69% 67%

Source: IRCC Express Entry Year-end Reports (2016[30]; 2018[13]; 2019[31]).

In Australia, all applicants must qualify to work in an occupation listed on a

Shortage Occupations List (SOL). Each draw is linked to annual target numbers
and ceilings for over-supplied occupations, to prevent skewed occupational
distributions. Hence, candidates scoring above a certain point-threshold are invited
to apply only within the occupational limit. In Canada, prior to the introduction of
Express Entry, a similar idea of using ceilings in occupations was in place for the
FSW in the late 2 000s to cap entries in each of the eligible occupations. Since 2008,
intake under the FSWP, FSTP and CEC was managed with lists of eligible
occupations with maximum caps per occupation accepted. For instance in 2014, the
FSWP had an overall application cap of 25 000 applications. Each of the 50 eligible
occupations had an imposed cap of 1 000 per NOC. For the CEC between
November 2013 and October 2014, the ministry accepted only a maximum of
12 000 new applications under the CEC29 and excluded some occupations from
applications, due to a large inventory of applications.30 At the same time,

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occupational sub-caps of 200 applications in each NOC B (medium-skilled)

occupation were used to manage application intake, while there were no caps on
managerial and high-skilled occupations (NOC 0 and A).
However, under the current system apart from the FSTP only some of the PNPs use
occupation lists for permanent migration. In New Zealand, applicants must prove
their ability to work in one of the occupations in a list of shortage occupations.
Moreover, bonus points are awarded for occupations that figure on the Long Term
Skill Shortage List, i.e. shortages perceived of structural nature. In Canada,
occupation lists for FST intended to refer to national shortages in the skilled trades.
In Australia, they reflect structural need over the medium to longer term.
New Zealand’s list is explicitly based on long-term considerations.

… but it is not clear if immigrants can find employment suited to their skill-
level
Skilled population growth is a core objective of Canadian immigration policy.
However, immigrants should be able to work in an occupation that fits their skills
and educational attainment. In fact, this seems to be the major difficulty of
newcomers to Canada in the short-run (IRCC, 2018[32]). Unfortunately, there is no
recent comprehensive data available on the incidence of over-qualification in
Canada. Data from the 2011 National Household Survey suggests that over-
education rates for recent employed immigrants between the ages of 25 to 64 years
with post-secondary education is 53% compared to 30% for non-immigrants
(FLMM, 2014[33]). Indeed, over-qualification rates among immigrants in Canada
were above the OECD average (OECD/EU, 2015[34]).
There is no data available on the occupations labour immigrants actually take up
once they land in Canada. However, a recent IRCC survey indicates that of those
respondents working, a large proportion of EE-selected immigrants (73%) report
that their current job matched their education, skills and experience and over four
in five (81%) felt that their current job met or exceeded their expectations. Both of
these shares are higher than among non-EE-selected respondents at 65% and 78%,
respectively (IRCC, forthcoming[14]).

Barriers for immigrants’ access to regulated professions should be reduced

and information exchange improved
A particular challenge is the access to regulated/licenced occupations. Occupational
regulation aims to protect the public by ensuring quality standards, but at the same
time creates barriers to entry into occupations and hence risks monopoly costs. In
occupations that do not require foreign credential recognition, employers are
responsible for making sure a potential employee has the appropriate qualifications,
training and experience. Procedures for licencing in regulated professions tend to
be complex and involve a variety of different stakeholders, depending on the
province and the profession concerned. Occupational licensing not only ensures that
migrants can work in the occupation for which they have been trained, this better
job matching is also associated with higher wages (Gomez et al., 2015[35]).

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In this respect, it is important to note that all applicants to the FSW with foreign
education and those who want to earn points for their education in the CRS need an
assessment of their credentials, a so called Education Credential Assessment
(ECA).31 Such an assessment is a report by an independent company that evaluates
foreign education. Currently, IRCC has designated five professional bodies to
provide ECA and two bodies for specific occupations.32 Processing times and costs
vary between these bodies.
For Express Entry, this report attests that a foreign degree, diploma and/or
certificate is valid and equal to a Canadian one. In general, an assessment of the
highest level of education is sufficient, unless applicants want to earn points for two
or more credentials, in which case both need to be assessed (see section on step one
of Express Entry above).
It is important to note that an ECA for migration purposes is not a formal procedure
for foreign qualification recognition (FQR). Obtaining an ECA does not allow for
access to regulated professions.33
In Canada’s federal system, foreign qualification recognition (FQR) procedures are
largely with the provinces and territories. Within these, responsibility has been
delegated to over 600 regulatory bodies and apprenticeship authorities, overseeing
more than 650 regulated occupations. What is more, some occupations are
regulated in some provinces but not in others. Applicants are expected to contact
the regulatory body in the province or territory where they plan to settle, to find out
if they need a licence to practice in their intended occupation. However, anecdotal
evidence suggests that individuals have rarely done this in the past (Johnson and
Baumal, 2016[36]).
Acknowledging these challenges, the Forum of Labour Market Ministers,
consisting of representatives from federal, provincial and territorial bodies,
launched the Pan-Canadian Framework for the Assessment and Recognition of
Foreign Credentials in 2009. The Framework initially targeted a short list of
regulated occupations, but it has been expanded in recent years (FLMM, 2014[33])
to cover more than 90% of the occupations of those newcomers landing in Canada
every year. The Framework spans the steps individuals face as they move through
the licencing process, including pre-arrival supports and services. The assessment
stage typically includes a verification of authenticity of academic credentials and
the identification and evaluation of skills, credentials and work experience required
for entry into regulated occupations or educational programmes. Third-party
agencies (often other than the ones involved in the ECA) often conduct qualification
assessments for regulated occupations and registration decisions are made by
regulatory authorities on the basis of these assessed qualifications. After their
assessment, foreign credentials can be fully, partially or not recognised. If
recognised, they are certified directly. When skills are partially recognised,
immigrants are required to upgrade their skills to complete their credential
recognition to be certified. If foreign credentials are not recognised, then
immigrants are provided with support to find related occupations to their credentials
that do not require licencing (ESDC, 2018[37]).

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A report prepared for the Foreign Qualifications Recognition Working Group of the
Forum of Labour Market Ministers (Johnson and Baumal, 2016[36]), building on
interviews with labour migrants, has shown that immigrants are not aware of the
challenges involved in FQR. What is more, confusion exists among newcomers
between the ECA that they are generally required to take and the FQR which is
generally not required, but needed for the right to exercise many regulated
professions. The report recommends that licensing bodies should be required to take
the ECA assessment as a starting point in the licencing procedure. Thus, assessment
bodies would focus on confirming the authenticity of diplomas and offer an opinion
on their equivalence in the Canadian context, while regulators review how the
educational content and work experience matter for the purpose of licensure.
The above clearly suggests that more information and guidance is needed, notably
regarding the distinction between ECA and FQR, and the fact that responsibility for
occupational regulation rests within the jurisdiction of provinces and territories.
Applicants should be encouraged to assess whether their desired profession is
regulated in their preferred region of landing. Furthermore, ECA bodies could
provide enhanced profession-specific regulatory information and links to other
existing programmes, and in particular highlight the availability of pre-arrival
services related to credential recognition.
A specific problem arises from the fact that there are specific language requirements
for licensing in some professions which may go beyond those needed for
immigration purposes. Addressing this is not straightforward, however. Raising the
bar for migrants in those occupations – e.g. by requiring higher language levels –
would de facto incite migrants to select other related occupations (or provinces).
The related option of moving towards an occupation-specific skills assessment, as
currently done in Australia (see below), would move the Canadian system away
from the largely skills/supply-driven system that it is today. Providing bonus points
is a third option. However, this would risk disproportionately channelling migration
into such occupations.
As a practical first step, providing immigrants with more information could help to
ensure that they have necessary documentation with them to gain recognition and
pass licencing examinations when they land in Canada. Pre-arrival information and
support could also be more focused in such occupations (Box 2.1).
A related issue is that at present, regulatory bodies generally do not collect data or
provide feedback on the information they collect to IRCC. It is hence unclear how
many immigrants attempt and pass provincial/territorial licencing tests in their
intended occupation of immigration.
Finally, apart from a handful of occupations in the skilled trades, there are no
incentives in the system for candidates intending to work in a regulated profession
to initiate the licensing process before landing. One such incentive would be to
award full skill transferability points for all labour immigrants who obtained a
licence to practise in their regulated profession. However, this would penalise
candidates who work in such occupations. What is more, under the current system,

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candidates could circumvent this by stating intended occupations which are not
regulated, or provinces/territories where their occupation is not regulated.
In any case, initiating the licensing process from outside Canada is often impossible.
This, however, could be tackled by including a pre-test for likely recognition by
occupation. A resulting probability scale could be developed according to which
points are allocated – potentially under the skill transferability points for foreign
work experience.
An alternative approach would be to introduce a new temporary visa to enable
candidates in the Express Entry pool to come to Canada and initiate the recognition
process. Such a visa for recognition is currently used for example in Germany. Such
a visa could be attractive for candidates regardless of any points implications, as
this would enhance their employability in their occupation.

Box 2.1. Pre-arrival support

Canada is a leader in pre-arrival settlement services, and the provision of such

services has greatly expanded in recent years. In 1998, IRCC started to fund the
delivery of pre-arrival services abroad and while initially only provided to refugees,
services expanded to family and economic immigrants in 2001. Pre-arrival services
are only available to immigrants who are selected for permanent residence but who
are not yet in Canada, including PNPs. IRCC supports the delivery of these services
via Service Provider Organisations (SPOs) and spent close to CAD 62 million on
these services between April 2015 and August 2017. The Department renewed the
Pre-Arrival Services Program in December 2018 and as a result, sixteen SPOs are
being funded in the 2019-23 project cycle.
In general, pre-arrival services offer the same types of services as IRCC-funded in-
Canada Settlement services, with the exception of language assessments and
training. Nevertheless, pre-arrival services vary considerably in scope, type of
delivery (in-person or online) and size. In-person pre-arrival services are provided
in India, China, Philippines and Morocco for non-refugees. Services for refugees
are available in various global locations, and are delivered by the International
Organization for Migration (IOM). In-person pre-arrival services are delivered in
local languages, when possible.
Five SPOs (including IOM) provide general information dissemination and
national-level orientation sessions, and also conduct needs assessments and
referrals to other pre-arrival and in Canada services. The remaining 11 SPOs
provide more targeted employment supports such as occupation- or regional-
specific information and mentoring programmes in a newcomer’s future
community. In some cases, regulators and apprenticeship authorities work together
with these pre-arrival SPOs.
According to the latest IRCC evaluation of pre-arrival services, economic
immigrants who used pre-arrival support felt more prepared when they first arrived
in Canada and employment-related services had a positive impact on immigrants’

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preparedness for the Canadian work environment. However, the study found no
significant differences between participants and non-participants in employment-
related pre-arrival services in terms of difficulties when getting a job that matches
skills and qualifications in the first three months in Canada. Nevertheless, 45% of
participants in such pre-arrival services reported it to be difficult or very difficult
to get their professional credentials and qualifications recognised in contrast to 55%
among non-participants.
Overall, a key challenge for IRCC related to pre-arrival service uptake is to reach
its target audience. Since the expansion of pre-arrival services in April 2015 until
August 2017, only 8.5% of economic immigrants eligible for pre-arrival services
received such support. Since October 2017, IRCC sends an automated invitation
letter to all eligible permanent resident immigrants when they receive a positive
eligibility decision in their immigration application, but this might be too late in the
immigration process (IRCC, 2018[32]).
IRCC’s vision for renewed Pre-Arrival Services Program aims to address
evaluation recommendations and includes increasing awareness among potential
clients of the available pre-arrival services and supports through better promotion;
ensuring easier transitions from pre- to post-arrival in Canada; and creating
dedicated pathways for service for three key client groups: economic and family
class immigrants, Francophones, and refugees.
The renewed programme aims at enhancing the economic and social integration of
newcomers by: directly connecting clients with the information and services they
need through a streamlined, easy-to-navigate process; providing pre-arrival
services to Francophones through a collaborative partnership model; offering
general, regional and occupation-specific employment services to boost job
prospects; encouraging newcomers to apply for job licensure before they arrive, if
needed; and linking clients to federal and provincial settlement services in Canada.

Efficiency and Transparency

Express Entry shortened application processing times and increased

efficiency
A significant problem for Canada’s pre-2015 immigration system was its lack of
efficiency. Reducing processing times was a core motivation for the introduction of
Express Entry, where backlogs under the FSW in 2008 grew to over
600 000 applications and the median processing time for a FSW was 34 months
(IRCC, 2010[4]). The Expression of Interest system responded to the need to manage
oversupply and to identify and prioritise the candidates with the highest labour
market potential.
In Express Entry, candidates submit their profile electronically with an educational
assessment for FSW and proof of language certificates for all classes. This required
objective assessment was partly motivated by the fact that immigrants in the past
tended to overstate their actual language knowledge. What is more, foreign

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education systems do not always perform as well as the Canadian one, thus limiting
transferability.
A key question is at which stage skills should be best assessed. One the one hand,
verification further down the application line can be burdensome for applicants (and
sponsors) who discover misunderstandings at a late stage of the application and
reduce efficiency if processing officers need to request missing information. On the
other hand, supporting documents can be costly for applications, and early-stage
verification can discourage candidates to submit an EOI. When applicants need to
produce supporting documents at an early stage, such as in the Canadian system,
they should be allowed to stay in the pool for a relatively long period. Indeed, in
the case of Canada, candidates stay in the pool for a full year.
Once drawn from the pool and invited to apply, candidates have 60 days to submit
an application. The targeted processing time under EE for a permanent residence
visa to Canada – from submission to final decision – is six months. In 2016 and
2017, IRCC succeeded in processing 80% of applications in six months or less. In
2017, IRCC processed 80% of applicants under the FSW and the CEC within four
months (IRCC, 2018[13]). The combination of automated process and control over
total numbers of invitations improved application management. The current
duration is similar to the average processing time of six months in New Zealand
and slightly faster than the points-tested skilled independent visa in Australia,
where 75% of applications are processed within seven months.
Peer systems vary in their requirements for certification and objective assessment
for entering the pool. In Australia, candidates must have the results of their skills
assessment (which might involve a fee to the assessing authority) in order to submit
their EOI. Other claims need to be proven once applicants are invited to apply.
New Zealand, applicants do not need to include any evidence with their EOI. Once
the EOI meets the criteria, applicants enter a selection pool. If they are drawn from
the pool and are invited to apply for NZ permanent residence, they are asked to
provide the evidence to support their claims made in the EOI.

The benefit of a LMIA in the context of permanent skilled migration is not

evident
In principle, whenever an employer wants to hire a foreign worker, they need a
Labour Market Impact Assessment (LMIA) from ESDC/Service Canada. A
positive LMIA confirms the need for a foreign worker to fill an offer and the lack
of a Canadian worker or permanent resident available to do the job. Immigrants
need a positive LMIA to apply for a work permit. In contrast to LMIAs for
temporary labour migration (where a processing fee of CAD 1 000 applies), LMIAs
for permanent migration are free of charge.
While this principle applies to all potential new immigrants who want to gain points
for a job offer under Express Entry, various LMIA-exemptions exist. In particular,
an employer does not need an LMIA for already working with him/her on a
temporary visa for at least a year (full-time) before. Hence, onshore transitions tend
to be exempt from the LMIA-requirement.

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The LMIA, which is discussed at length in Chapter three due to its key role in
managing temporary labour migration, serves to verify integrity of the offered job,
such as the genuineness of the employer. It also serves as a labour market test, i.e.
it assesses whether permanent residents or Canadians currently unemployed would
be available to do the same job.
Canada’s Express Entry is unique among settlement countries in having a labour
market test for high-skilled permanent immigration. There are no similar labour
market tests in New Zealand and in Australia. Indeed, a labour market test – i.e. to
check whether a particular job could be done also by an unemployed resident – runs
counter the notion of a largely supply-driven system that does otherwise not intend
to fill specific labour gaps. It also enhances administrative overhead and slows
down the process. Obviously, to avoid abuse, there need to be some integrity
checks. In particular, the genuineness of the job offer needs to be assessed, as is
also done in peer systems.
In 2017, only 10% of admissions under EE claimed the bonus 50/200 points for a
valid job offer, compared with a third in 2016. Out of those admitted in 2017 who
claimed the bonus points, 43% benefited from an LMIA exemption. Given the
surprisingly low number of candidates who claim the 50/200 bonus points, it is
conceivable that many eligible applicants with otherwise sufficient points do not
bother undergoing the burdensome LMIA process. In fact, a recent survey by IRCC
(forthcoming[14]) suggests that at the time of admission, 62% of respondents already
had a job in Canada. Against this evidence, Canada could consider alternatives to
the LMIA process. Apart from the mentioned integrity checks, one possibility
would be to differentiate in the points allocated for a job offer between those with
a LMIA and those without. In such a system, applicants who obtained a
positive/neutral LMIA receive the full number of points, as do those applicants who
have a job offer which is LMIA-exempt. In turn, applicants who need a LMIA for
their job offer to be valid but have not yet obtained one, would receive a lower
number of points.

Multi-year plans allow for a longer planning horizon

As mentioned in Chapter 1, until 2017 Canada had annual migration levels plans.
In 2016, the target of 54 000 to 59 000 new federal high-skilled labour immigrants
was slightly surpassed, with 60 000 admissions. In the following year, the
57 150 admissions under the federal high-skilled category (CEC, FSW, FST) were
below the target range of 67 600 to 75 300, partly compensating for the higher
intake in the previous year.
Against this backdrop, the government moved to a multi-year Immigration Levels
Plan in 2017. The first plan, for 2018-20, aims to welcome around 565 000 new
permanent economic immigrants (including accompanying spouses and
dependants) over these three years, 58% of all new permanent immigrants to
Canada. A significant part of the economic stream (43%) are planned to be under
the federal high-skilled category, managed via Express Entry, and 33% of the

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economic stream are expected to be Provincial Nominees, partly managed via

Express Entry (IRCC, 2017[22]).
The draws from the Express Entry pool respond to the admission levels foreseen
under multi-annual planning levels. In times of high inflows of candidates, the
system works well as it selects the best-suited candidates from an enlarged pool.
The situation could be different in the hypothetical case of periods of slack supply,
if for instance a relatively smaller number of interested applicants with overall
lower CRS-scores drive the pass mark down to a very low level. To this end, the
introduction of a revised entry-grid for all potential labour immigrants, hence all
applicants in the pool, as discussed in several parts of this review already, will
ensure minimum qualifications for labour immigrants during periods of scarce
supply. Thus far, however, this has not happened. In contrast, there were over
95 000 interested applicants in the EE-pool at the beginning of 2019, a strong
increase over the 71 000 beginning 2018.
Obviously, such a three-year planning system is not very reactive to sudden
economic shocks. Indeed, the largely supply-based permanent system is not
intended to be reactive in this respect (in contrast to the temporary system, see next
Chapter). That notwithstanding, in contrast to the pre-EE system, in such a case
intakes could be immediately adjusted under EE, with no implications other than
not meeting the target.

Federal permanent labour migration outside of Express Entry

Business programmes
In addition to the programmes discussed already, every year a small share of federal
economic migrants land as a part of other migration programmes, not managed via
Express Entry or regional agreements. Currently, individuals can apply to specific
Self-Employed and Start-Up Visa programmes. These replaced the federal
Immigrant Investor Program and the Entrepreneur Program, which were closed in
2014 for further applications.
While a larger share of individuals under the business classes, relative to other
labour immigrants, earn income through investment, principal applicants admitted
under the business programmes have considerably lower overall incomes than other
labour immigrants. For those admitted in 2006, ten years after admission, median
income (including both employment and other income) was a mere CAD 19 200
and hence less than half of the median income of their peers admitted through the
other federal economic programmes in the same year (CAD 48 100) (Statistics
Canada, 2019[38]). It was also much lower than the median income among the
Canadian population (CAD 33 300). Indeed, many entrepreneurs are admitted
through the mainstream federal and provincial programmes. In fact, any permanent
resident can set up a business in Canada.
For the new Self-Employed programme, candidates need to have relevant
experience in working for themselves and intend and to be able to become self-
employed in Canada in the arts or athletics – i.e. it is a small-scale programme

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focused on a very specific segment of the labour market where candidates would
otherwise probably not get selected through EE. IRCC assesses individual
applicants under this stream with a point grid based on education, experience, age,
language ability and adaptability. Individuals have to earn 35 out of 100 available
points to qualify for the programme. The current processing fee including the right
to permanent residence is CAD 1 540 and the estimated processing time for this
visa class is 24 months. In 2017, Canada admitted 175 principal applicants under
this programme, most of them destined to Ontario.
The Start-Up Visa Program, launched as a five-year pilot programme in April 2013
and made permanent in March 2018, aims to attract foreign innovators to contribute
to the Canadian economy and facilitate entry of entrepreneurs who actively pursue
business ventures in Canada. During the five year duration of the pilot, IRCC
accepted 132 entrepreneurs and their spouses and dependants for permanent
residence (IRCC, 2018[12]).
Individuals applying to the Start-Up Visa Program must secure a commitment from
a designated Canadian business incubator, angel investor group or venture capital
fund to support their business concept. They further need to prove language skills
equivalent to CLB 5 in English or French, possess a certain ownership share in their
business, and bring enough money to settle, currently CAD 12 475 for a single
applicant. The current processing fee including the right to permanent residence is
CAD 1 540, and the estimated processing time for this visa class is 12 to 16 months.
An IRCC evaluation of the initial pilot of the programme from 2016 fund that the
programme admitted entrepreneurs with greater human capital than previously,
who are actively pursuing innovative businesses in Canada. The majority of
businesses related to software development (in education, finance, and social
media) as well as other technology segments. The evaluation also found that the
Start-Up Visa immigrants are younger, higher educated and have better language
skills than the participants of the previous entrepreneur programme (IRCC,
2016[39]). However, their total number is small.
Due to the termination of the investor and the entrepreneur classes, the number of
labour immigrants (i.e. principal applicants) landing via business classes has
declined and in 2017, contributed less than 2% of labour immigrants in that year.
As outset in the 2018-20 Immigration Levels Plan, Canada plans to further reduce
the number of individuals admitted under these programmes, for each of the years
2018, 2019 and 2020 to a target of just 700 persons (IRCC, 2017[22]). This number
includes labour immigrants themselves, as well as their spouses and dependants.

Pilot programmes
A key feature of Canada’s approach to migration management is to constantly
develop and test new and innovative approaches. Ministerial Instructions establish
so-called “pilot programmes”, which are in some cases made permanent; in others,
they end after a pre-defined period. There were several such programmes in recent
years, in addition to the Start-up pilot mentioned in the previous section. Since the
end of November 2014, the Caring for Children and Caring for People with High

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Medical Needs pilot programmes offer a pathway to permanent residence after two
years of Canadian work experience in specific caring occupations, effectively
replacing the Live-in Caregiver Program (Chapter 3). These are now being replaced
by two other caregiver pilots. In addition, two recent pilot programmes focus on
specific demographic and labour market-related challenges. The first is the Atlantic
Immigration Pilot Program (AIP), an employer-driven five-year pilot, established
in March 2017 to attract and retain skilled immigrants in Atlantic Canada. The Rural
and Northern Immigration Pilot Program announced in January 2019, is a five-year
community-driven pilot to attract economic immigrants to settle in rural areas
within Ontario, the Canadian western provinces and northern territories
(Chapter 4).

Conclusion
Canada’s new selection system, Express Entry, is arguably the most elaborate
selection system in the OECD. It greatly enhanced flexibility and operates a refined
selection along a continuum of points. A key innovation is that it credits the positive
interaction of several simultaneously existing characteristics of labour migrants.
While Express Entry is complex, the selection itself is transparent. It allows for an
inclusion of the provinces and territories in selection and for setting minimum
standards for federal labour migrants across the country. Express Entry also
eliminated the backlog of applications and greatly quickened visa processing for
selected immigrants.
Canada has an elaborate monitoring and assessment system. This allowed for an
early assessment and quick reaction to address initial shortcomings. The overall
positive assessment notwithstanding, a key remaining shortcoming of the system is
the separate entry pathways, which were all designed prior to Express Entry and are
not fully consistent under the new system. Having one single entry grid with core
criteria would thus enhance consistency and reduce the current complexity.
Foreign credential recognition is a key challenge in a system that bases heavy
weight on formal skills, as is the case in Canada. This is further exacerbated by the
country’s federal nature, with decentralised responsibilities for credential
recognition. Addressing this is not straightforward. While better information and
data exchange within Canada and awareness-raising among potential candidates are
first steps, additional incentives would be an important element in a strategy to
make sure that candidates in regulated professions can effectively work in their
occupations. One promising option in this respect could be specific visa for foreign
credential recognition.
The system is complemented by a number of pilot programmes, allowing Canada
to test new approaches to economic challenges such as attracting entrepreneurs,
attracting labour migrants to particular regions, and settling and retaining migrants
in rural areas.
Finally, the Expression of Interest system is complemented by a number of business
and economic pilot programmes, allowing Canada to test new approaches to

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economic challenges such as attracting entrepreneurs, settling migrants in rural

areas and attracting labour migrants to particular regions.

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Notes

1 Professionals and skilled administrators required 52 points, applicants for technical streams 47 and those for
trades 45 points. This idea of a class dependent entry grid still partly exists in today’s system, through the
Federal Skilled Trades Programme.
2In 2008, an amendment (the C-50 Bill) delegated power to the Minister for Immigration to periodically set
qualifiers for admission through Ministerial Instructions. The amendments to the Immigration and Refugee
Protection Act (IRPA) was made through Bill C-50 (the Budget Implementation Act), which came into effect
on February 27, 2008. Hence, all federal skilled workers processed from 2008 are categorised as C-50 and those
who applied earlier as pre C-50.
3 In case more than one candidate meets the final pass mark, the system selects those who earlier submitted
their profile into the pool
4The CRS-score (Comprehensive Ranking System) is also referred to as the ITA-score (Invitation to Apply).
5 For instance, an Express Entry applicant who is interested in working in British Columbia, must also meet
requirements for one of the Express Entry PN British Columbia (EEBC) programs such as the EEBC — Health
Care Professional programme that targets health workers like doctors and nurses.
6 Candidates nominated by a province or territory are always invited as a Provincial Nominee.
7 About 3% of admissions under EE in the two main streams (FSW and CEC) in 2017 were aged 45 and above.
8 Currently 176 skilled occupations are eligible for this visa programme and candidates must submit a skill
assessment prepared by the relevant body for each profession.
9 30 hours or more paid work per week
10 The CLB is a descriptive scale of language ability on a continuum of 12 benchmarks across three stages:
CLB 1-4 (Basic), CLB 5-8 (Intermediate) and CLB 9-12 (advanced). It assesses language ability in four core
competences (reading, writing, speaking and listening). Within each level, learners progress from initial, to
developing, to adequate, to fluent ability (CIC, 2012[40]). CLB 1 to CLB 4 qualify a basic user of the language,
who can understand and communicate in simple and routine tasks. CLB level 5 to 8 describe an intermediate
language ability that allows for fuller participation in a wider variety of contexts. It is the range of abilities
required to function independently in most familiar situations of daily social, educational and work-related life
experience, and in some less predictable contexts. A CLB 7 denotes an adequate intermediate ability whereas
CLB 8 refers to a fluent intermediate ability.10 A CLB 9 and higher verifies a proficient language user.
Applicants can check how their CELPIP, IELTS and TEF scores translate into CLB levels using language test
equivalency charts on the website of IRCC (IRCC, 2018[41]).
11FST applicants need a certificate of qualification in the skilled trade issued by a Canadian or territorial
authority, or, alternatively, a full-time employment offer in an eligible trade occupation for at least one year.
12Prior to introduction of Express Entry, the minimum points required for selection under the FSW program
was also 67 points.
13If the territory or province where an applicants under the FST class wants to live and work does not give
Certificates of Qualification in their trade the applicants must have a qualifying job offer in their trade from an
Canadian Employer.
14 As a term of reference for the following explanations, the minimum CRS-score in all non-programme-specific

draws in 2017 had been between 415 and 468 points.

15 With an LMIA approval from Service Canada
16 Brother or sister living in Canada (citizen or permanent resident).
17 Appendix A to this chapter includes a detailed table with all points for each factor.

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18Numbers discussed here are for individuals without a spouse or common law partner. The tables in the
appendix include detailed numbers for applicants with and without a spouse or common-law partner.
19 In 2016, 7% of spouses and dependants of labour immigrants received such support.
20Such NOC 00 migrants tend to be very highly paid. In 2015 and 2016, all labour immigrants filing income
under a NOC 00 occupation had pre-landing experience. Further, all among those landed in 2015 and the
majority of those landed in 2016 –despite potentially not having a full year of income– declared an income of
over CAD 100 000, more than three times the Canadian median of CAD 33 300 in 2016.
21Alberta introduced its EE-linked PN stream in June 2018 but until the end of October 2018 had not invited
provincial nominees via EE, yet.
22Apart from one programme specific draw in February 2015, when IRCC issued 849 ITA under the CEC,
Express Entry never invited specific rounds of only FSW or only CEC applicants. It has however issued in
several rounds invitations specifically for the FSTs and PN-programmes.
23 One additional difference that should be looked into is the required proof of funding under the different
categories.
24 Though only proven for English ability among men)
25Due to the time lag between receiving and invitation to apply to submitting an application (60 days), the
numbers refer to all candidates in the pool since the start of Express Entry in January 2015 until October 2018.
When interpreting the numbers it should be noted that IRCC changed the sorting category of applicants into
CEC instead of FSW which might impact the probability to land in these categories.
26 This is also the case for education and knowledge of official languages.
27 Remuneration at or above NZD 50 per hour (or the equivalent annual salary).
28In New Zealand, SkillFinder matches the profiles of candidates who are interest in migration to New Zealand
and sign up to the portal “New Zealand Now” with vacancies that employers register in SkillFinder.
29 In May 2014, the cap was renewed to allow for 8 000 applications per year under the CEC.
30 The occupations were: cooks (NOC 6322); food service supervisors (NOC 6311); administrative officers
(NOC 1221); administrative assistants (NOC 1241); accounting technicians and bookkeepers (NOC 1311); and
retail sales supervisors (NOC 6211).
31 A Canadian degree, diploma or certificate does not require an assessment.
32For physicians (NOC 3111 or NOC 3112), the Medical Council of Canada must do the ECA for the primary
medical diploma and for Pharmacists (NOC 3131) who need a licence to practice, the Pharmacy Examining
Board of Canada must do the assessment.
33In fact, FQR licensing bodies regularly disagree with the equivalencies drawn by ECA organisations. This is
one reason why some professional organisations are becoming ECA organisations – so they can better control
equivalencies and potentially streamline professional certifications.

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https://www.canada.ca/en/immigration-refugees-citizenship/corporate/reports-
statistics/evaluations/federal-skilled-worker-program.html (accessed on 14 September 2018).

IRCC (forthcoming), Survey of Economic Principal Applicants 2019. [14]

Johnson, K. and B. Baumal (2016), Improving Pre-Arrival Information Uptake for [36]
Internationally Educated Professionals,
http://media.wix.com/ugd/aa01fe_3a4408b9b0814ed4938a389c2ae37538.pdf (accessed on
13 September 2018).

Li, Q. and A. Sweetman (2013), The Quality of Immigrant Source Country Educational [24]
Outcomes: Do they Matter in the Receiving Country?, Centre for Research and Analysis of
Migration Department of Economics, University College London, http://t.cream-
migration.org/publ_uploads/CDP_32_13.pdf (accessed on 13 September 2018).

New Zealand Government, M. (2019), Points Indicator for Skilled Migrant Expression of [9]
Interest | Immigration New Zealand, http://www.immigration.govt.nz/new-zealand-
visas/apply-for-a-visa/tools-and-information/tools/points-indicator-smc-28aug# (accessed on
22 January 2019).

OECD (2019), OECD Employment Outlook 2019: The Future of Work, OECD Publishing, Paris, [29]
https://dx.doi.org/10.1787/9ee00155-en.

OECD (2019), OECD Skills Outlook 2019 : Thriving in a Digital World, OECD Publishing, [28]
Paris, https://dx.doi.org/10.1787/df80bc12-en.

OECD (2018), Recruiting Immigrant Workers: Australia 2018, Recruiting Immigrant Workers, [5]
OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264288287-en.

OECD (2014), Recruiting Immigrant Workers: New Zealand 2014, Recruiting Immigrant [8]
Workers, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264215658-en.

OECD (2013), “The fiscal impact of immigration in OECD countries”, in International [7]
Migration Outlook 2013, http://dx.doi.org/10.1787/888932822921.

OECD/EU (2018), Settling In 2018: Indicators of Immigrant Integration, OECD Publishing, [11]
Paris/EU, Brussels, https://dx.doi.org/10.1787/9789264307216-en.

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118  2. PERMANENT LABOUR MIGRATION

OECD/EU (2015), Indicators of Immigrant Integration 2015: Settling In, OECD Publishing, [34]
Paris, http://dx.doi.org/10.1787/9789264234024-en.

OECD/EU (2014), Matching Economic Migration with Labour Market Needs, OECD [19]
Publishing, Paris, http://dx.doi.org/10.1787/9789264216501-en.

Statistics Canada (2019), Table 43-10-0009-01. Immigrant Income by admission year and years [38]
since admission, Canada and provinces.

Warman, C., A. Sweetman and G. Goldmann (2015), “The Portability of New Immigrants’ [21]
Human Capital: Language, Education, and Occupational Skills”, Canadian Public Policy,
Vol. 41/Supplement 1, pp. S64-S79, http://dx.doi.org/10.3138/cpp.2013-055.

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 2. PERMANENT LABOUR MIGRATION  119

Annex 2.A. Canada’s points system and process comparison

Annex Table 2.A.1. Comprehensive Ranking System

Core / human capital factors With a spouse or common-law Without a spouse or

partner (Maximum 460 points) common-law partner
(Maximum 500 points)
Age Number of points (100 maximum) Number of points (110
maximum)
17 years of age or less 0 0
18 years of age 90 99
19 years of age 95 105
20 to 29 years of age 100 110
30 years of age 95 105
31 years of age 90 99
32 years of age 85 94
33 years of age 80 88
34 years of age 75 83
35 years of age 70 77
36 years of age 65 72
37 years of age 60 66
38 years of age 55 61
39 years of age 50 55
40 years of age 45 50
41 years of age 35 39
42 years of age 25 28
43 years of age 15 17
44 years of age 5 6
45 years of age or more 0 0
Level of Education With a spouse or common-law Without a spouse or common-
partner - Number of points law partner - Number of points
(140 maximum) (150 maximum)
Less than secondary school (high school) 0 0
Secondary diploma (high school graduation) 28 30
One-year degree, diploma or certificate from a university, college, 84 90
trade or technical school, or other institute
Two-year program at a university, college, trade or technical school, 91 98
or other institute
Bachelor's degree OR a three or more year program at a university, 112 120
college, trade or technical school, or other institute
Two or more certificates, diplomas, or degrees. One must be for a 119 128
program of three or more years
Master's degree, OR professional degree needed to practice in a 126 135
licensed profession (For “professional degree,” the degree program
must have been in: medicine, veterinary medicine, dentistry,
optometry, law, chiropractic medicine, or pharmacy.)
Doctoral level university degree (Ph.D.) 140 150
Official languages proficiency - first official language With a spouse or common-law Without a spouse or common-
Maximum points for each ability (reading, writing, speaking and partner Maximum 128 points law partner Maximum
listening): 136 points
32 with a spouse or common-law partner
34 without a spouse or common-law partner
Less than CLB 4 0 0
CLB 4 or 5 6 6
CLB 6 8 9
CLB 7 16 17
CLB 8 22 23
CLB 9 29 31
CLB 10 or more 32 34

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Official languages proficiency - second official language With a spouse or common-law Without a spouse or common-
Maximum points for each ability (reading, writing, speaking and partner Maximum 22 points law partner Maximum
listening): 24 points
6 with a spouse or common-law partner (up to a combined
maximum of 22 points)
6 without a spouse or common-law partner (up to a combined
maximum of 24 points)
CLB 4 or less 0 0
CLB 5 or 6 1 1
CLB 7 or 8 3 3
CLB 9 or more 6 6
Canadian work experience With a spouse or common-law Without a spouse or common-
partner Maximum 70 points law partner Maximum
80 points
None or less than a year 0 0
1 year 35 40
2 years 46 53
3 years 56 64
4 years 63 72
5 years or more 70 80
Subtotal - Core / human capital factors Out of 460 points Out of 500 points
Spouse or common-law partner factors (if applicable) With spouse or common-law Without spouse or common-
partner - number of points per law partner (does not apply)
factor
Spouse’s or common-law partner’s level of education Maximum 10 points
Less than secondary school (high school) 0
Secondary school (high school graduation) 2
One-year program at a university, college, trade or technical school, 6
or other institute
Two-year program at a university, college, trade or technical in 7
school, or other institute
Bachelor's degree OR a three or more year program at a university, 8
college, trade or technical school, or other institute
Two or more certificates, diplomas, or degrees. One must be for a 9
program of three or more years
Master's degree, or professional degree needed to practice in a 10
licensed profession (For “professional degree”, the degree program
must have been in: medicine, veterinary medicine, dentistry,
optometry, law, chiropractic medicine, or pharmacy.)
Doctoral level university degree (PhD) 10
Spouse’s or common-law partner’s official languages proficiency - Maximum 20 points
first official language
Reading, writing, speaking and listening– total points for each ability
Max per each ability 5
CLB 4 or less 0
CLB 5 or 6 1
CLB 7 or 8 3
CLB 9 or more 5
Canadian work experience Maximum 10 points
None or less than a year 0
1 year 5
2 years 7
3 years 8
4 years 9
5 years or more 10
Skill Transferability factors Maximum 100 points for this section
Education Maximum 50 points for Education
With good official language proficiency and a post-secondary degree Maximum 50 points
Points for CLB 7 or more on all Points for CLB 9 or more on all
first official language abilities, one four first official language
or more under 9 abilities
Secondary school (high school) credential or less 0 0
Post-secondary program credential of one year or longer 13 25

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Two or more post-secondary program credentials AND at least one 25 50

of these credentials was issued on completion of a post-secondary
program of three years or longer
With Canadian work experience and a post-secondary degree Maximum 50 points
Points for education + 1 year of Points for education + 2 years
Canadian work experience or more of Canadian work
experience
Secondary school (high school) credential or less 0 0
Post-secondary program credential of one year or longer 13 25
Two or more post-secondary program credentials AND at least one 25 50
of these credentials was issued on completion of a post-secondary
program of three years or longer
Foreign work experience Maximum 50 points for Foreign work experience
With good official language proficiency and foreign work experience 50 points
Points for foreign work experience Points for foreign work
+ CLB 7 or more on all first OL experience + CLB 9 or more
abilities, one or more under 9 on all four first OL abilities
No foreign work experience 0 0
1 or 2 years of foreign work experience 13 25
3 years or more of foreign work experience 25 50
With Canadian work experience and foreign work experience Maximum 50 points
Points for foreign work experience Points for foreign work
+ 1 year of Canadian work experience + 2 years or more
experience of Canadian work experience
No foreign work experience 0 0
1 or 2 years of foreign work experience 13 25
3 years or more of foreign work experience 25 50
Certificate of qualification (trade occupations) Maximum 50 points for this section
With good official language proficiency and a certificate of
Maximum 50 points
qualification
Points for certificate of Points for certificate of
qualification + CLB 5 or more on qualification + CLB 7 or more
all first OL abilities, one or more on all four first OL abilities
under 7
With a certificate of qualification 25 50
Additional points Maximum 600 points
Brother or sister living in Canada who is a citizen or permanent
15
resident of Canada
Scored NCLC 7 or higher on all four French language skills and
15
scored CLB 4 or lower in English (or didn’t take an English test)
Scored NCLC 7 or higher on all four French language skills and
30
scored CLB 5 or higher on all four English skills
Post-secondary education in Canada - credential of one or two
15
years
Post-secondary education in Canada - credential three years or
30
longer
Arranged employment - NOC 00 200
Arranged employment – any other NOC 0, A or B 50
Provincial or territorial nomination 600

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Annex Table 2.A.2. EOI systems in comparison

Canada Australia New Zealand

Visa categories in Multiple – FSW, CEC and FSTP. Multiple – General Skilled Migrants Single – Skilled Migrant Category
System System selects all suitable (189; 190; 489P) Applicants select Parallel EOI-pool for Investment 2
programmes for a candidate. preferred visa type(s) themselves
Invitations to the same applicants but can list only one occupation per
are issued in the following order: application
CEC > FSW > FST Parallel EOI-pool for Business
PNs meet requirements of at least Talent (132) and Business
one federal category Innovation and Investment (188P)
Pre-requisites to filing Online assessment for minimum Online assessment and electronic Online self-assessment with points
EOI requirements and electronic approval for qualifying pass mark– calculator but no electronic approval
approval. Requirements differ by requires basic personal information, – proceed to next step if qualifying
visa category – requires basic nominated occupation, language test mark is met
personal information, language test scores, Skills assessment (related to
scores, educational credential nominated occupation), work
assessment and work experience experience
Entry grid An entry grid only for assessing Single grid for determining both Single grid for determining both
FSW eligibility 67(100) as part of eligibility and points total – minimum eligibility and points total – minimum
EOI pre-requisites 60(100) 100(185)
List of requirements for other
categories
Job Matching Job Bank voluntarily (previously SkillSelect database – manual SkillFinder database – manual
mandatory), PES database with matching matching
electronic matching option
Submit Expression of Submit online all additional details to Submit online all additional details to Online and manual – only health and
Interest (EOI) – step complete electronic profile, complete electronic profile, police certificates submitted at this
one electronic approval of profile along electronic approval of profile stage – manual approval
CRS points score
Validity of EOI 1 year 2 years 6 months
Update possible Yes Yes No
Ranking and sorting Electronic sorting of all visa Electronic sorting of Skilled Automatic selection for total score
during draw categories via the Comprehensive Independent sub-class by total score over 160, rest manually selected as
Ranking System (CRS) per priority criteria
Other factors for draw Multiannual planning levels for Annual planning levels for economic Multiannual planning range for
economic migration via Express migration. In the skilled independent economic migration
Entry programme annual ceilings based
on shortage occupation list (SOL)
Invitation to Apply Automatically issued to all meeting Automatically issued to all meeting After preliminary manual verification,
(ITA) – step two floating pass mark in draw – in case floating pass mark in draw – in case issued to all meeting pass mark in
of tied scores, those with earlier file of tied scores, those with earlier file draw
date chosen (previously all) date chosen
Application for Online within 2 months from receipt Online within 2 months from receipt Manually or online within 4 months
permanent residence of ITA, proof of admissibility of ITA proof of admissibility from receipt of ITA, all documentary
visa requirements (health and character) requirements (health and character) evidence for PA and SA
for PA and SA for PA and SA
Labour Market Test Yes, positive Labour Market Impact No LMT but integrity checks are part No LMT but integrity checks are part
Assessment (LMIA) required for of immigration processes of immigration processes
granting job offer points
Priority processing No. Specific draws (by category) Yes. Applicants in regional No
possible and extra points for PNP sponsored migration scheme and
ensure selection those nominated by a state or
territory are given priority over skilled
independent applicants

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 3. TEMPORARY LABOUR MIGRATION  123

Chapter 3. Temporary labour migration

This chapter describes and analyses the two streams via which temporary labour
migrants come to Canada: the Temporary Foreign Worker (TFW) Program and the
International Mobility Program (IMP). It also looks at a specific sub-group of
temporary immigrants — international students — who since 2014 enjoy extended
working rights. The chapter outlines how the labour-market-tested TFW Program,
has become rather tightly managed and has continuously declined in overall
numbers while the IMP has grown substantially. It also discusses some specific
elements of the system, such as the policies for caregivers and, more generally, the
role of two-step (temporary to permanent) migration in international comparison.

The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli
authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights,
East Jerusalem and Israeli settlements in the West Bank under the terms of international law.

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124  3. TEMPORARY LABOUR MIGRATION

A key objective of temporary labour migration is to fill labour shortages that are
often concentrated in certain sectors and regions and – as the name suggests –
temporary in nature. In Canada, there are not only temporary labour migrants who
are admitted for such purposes, but also a wide range of temporary migrants with
working rights (such as researchers) coming under multiple programmes for
varying durations and purposes.
While in principle, a labour market test is required for temporary labour migrants
to ensure that Canadian or permanent residents are not available to fill an open
position, numerous exemptions apply. In particular, about three in four temporary
migrants to Canada with working rights are admitted because their presence
provides broader economic, cultural or other competitive advantages for Canada,
or because Canadians/permanent residents enjoy the same benefits in their country
of origin. The admissions of these migrants is not linked to labour market needs –
and thereby not labour-market-tested. Of these, about two-thirds receive open work
permits, and information on their activities is scarce. As a result, a large and
growing number of individuals in Canada have open work permits over which very
little oversight and hence analysis is currently possible. At the same time,
procedures for labour market tested programmes have become complex and are
now tightly regulated, leading to an overall decline in new inflows under these
streams.
Canada traditionally had clearly separated pathways for temporary and permanent
labour migration. This is gradually changing, and onshore transitions are
increasingly common. In most low-skilled occupations however, transitions are still
rare, as these migrants can essentially only pass through provincial nominations.
Other programmes, such as those in the caregiving sector, have a longstanding dual
intent with a built-in transition to permanent residence, subject to a number of
requirements.
Though not generally viewed as temporary labour migrants, a key group to consider
in this context are international students. Their working rights during study have
greatly expanded in recent years, and Canada also provides them with comparably
favourable options to stay and work after graduation. International students are also
a key source of future permanent labour migrants, benefitting from a selection
system that values Canadian credentials and experience.

Overview of temporary labour migrant groups

In 2017, according to standardised OECD data, around 214 000 temporary labour
migrants entered Canada for work purposes, a number that has strongly increased
in recent years (+50% 2015/2017). However, compared with peer systems in
Australia and New Zealand, Canada still receives relatively few temporary workers
for work purposes, around 1.1% of its labour force (Figure 3.1).

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 3. TEMPORARY LABOUR MIGRATION  125

Figure 3.1. Annual inflow of temporary labour migrants, 2017

in % of Labour Force (left) Total in 1 000 (right)
7 1200
6 1000
5 800
4
600
3
400
2
1 200
0 0

Note: Data excludes renewals and temporary migration under mobility agreements, such as posted workers
(intra-EU/EFTA).
Source: OECD Migration Database 2018 (https://stats.oecd.org/Index.aspx?DataSetCode=MIG) and OECD
Labour Force Database 2018 (https://stats.oecd.org/Index.aspx?DataSetCode=ALFS_SUMTAB).

A large number of programmes for temporary work purposes co-exist, including

bilateral programmes with countries and regions. Some programmes target specific
occupations or seasonal employment, and others, such as those for caregivers, have
established explicit links with the permanent migration system, initiating a two-step
– temporary to permanent – migration. As mentioned in Chapter 1, following
concerns of abuse of the previous temporary foreign worker programme, changes
to the temporary migration system took place in 2014, establishing two distinct
programmes (ESDC, 2014[1]).
The first is the Temporary Foreign Worker (TFW) Program, through which
employers can hire foreign workers to fill labour and skill shortages where qualified
Canadians or permanent residents are not available. A labour market test – a so-
called Labour Market Impact Assessment (LMIA) by Employment and Social
Development Canada (ESDC) – verifies the genuine need for a temporary foreign
worker by checking that the employer has first tried to recruit among Canadians
and permanent residents. The employer applies for the authorisation to hire under
the TFW Program to ESDC. Once the employer has received a positive LMIA, the
foreign worker can apply with the positive LMIA for a work permit to IRCC, under
the TFW Program.
This process differs if the temporary worker, under the TFW Program, intends to
work in Quebec. In that case, employers must obtain approval from both ESDC and
the Quebec government by submitting an application for an LMIA to both ESDC
and the Ministère de l’Immigration, de la Diversité et de l’Inclusion (MIDI). In
addition, employers need to submit an application to MIDI for a Certificat
d’acceptation du Québec (CAQ) for temporary work in Quebec. ESDC and MIDI
jointly analyse the LMIA according to respective regulatory criteria. MIDI assesses
wages, working conditions and whether the employment of the foreign worker is
likely to adversely affect the settlement of any labour dispute in progress or the

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126  3. TEMPORARY LABOUR MIGRATION

employment of any person involved in the dispute. ESDC assesses recruitment

efforts, the authenticity of the job offer and the labour market need.1 Subsequently,
the TFW must submit their work permit application to IRCC and attach a copy of
the joint positive LMIA decision, as well as the approved CAQ.
The second umbrella programme, the International Mobility Program (IMP),
includes LMIA-exempt work permits as well as work permit exemptions.
Exemptions from the labour market test are provided when there are broader
economic, cultural or other competitive advantages for Canada or when Canadians
and permanent residents enjoy reciprocal benefits in other countries such as in the
case of international exchanges or provisions under trade agreements. In addition,
exemptions from the LMIA exist for a number of specific groups, including refugee
claimants, certain permanent residence applicants in Canada and their family
members and for humanitarian reasons. Several professions and individuals are
allowed to work in Canada without a work permit. This includes international full-
time students with a valid study permit, who can work part-time during the
academic season and full-time during academic break both on and off campus based
on their valid study permit if the permit states this condition, business visitors and
short-term highly skilled workers and researchers, foreign representatives, foreign
military members as well as some specific professions.2 ESDC is responsible for
the TFW Program while Immigration, Refugees and Citizenship Canada (IRCC)
administers the IMP.
Temporary work permits in Canada can be either open or employer-specific. Open
work permits are in most cases unrestricted3, meaning they are neither employer-
nor occupation-bound and allow their holder to work throughout Canada and for
any employer. Open work permits do not require an LMIA from ESDC and
employers do not need to submit an offer of employment via the Employer Portal,
nor pay the full employer compliance fee (see next section). Individuals who
receive an open work permit come from a diverse group of foreign nationals who
require such permits for many different reasons. As they do not need an LMIA,
open work permit holders are part of the IMP, although not all individuals who are
part of the IMP are eligible for an open work permit. The largest groups with such
a permit are spouses of economic immigrants and international students, former
international students holding a post-graduation work permit, and participants in
the working holiday programme, one of three categories under the International
Experience Canada (IEC), the bilateral reciprocal Youth Mobility Agreements
(YMA) Canada has negotiated with partner countries. Furthermore, open work
permits are also granted to other groups under the IMP, such as, for example,
asylum seekers and applicants for permanent residence from within Canada.
While open work permits state solely the duration of the permit, an employer-
specific permit additionally states the name of the employer and, where applicable,
the location. A temporary foreign worker who holds such a permit can only work
for the employer, length of time and, where applicable, the place specified on the
permit. Individuals working under the TFW Program generally hold employer-
specific work permits. Hence, they need to obtain a new work permit if they wish
to change employer. Workers under the Seasonal Agricultural Workers Program

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 3. TEMPORARY LABOUR MIGRATION  127

(SAWP) – one sub-stream of the Primary Agriculture stream – are an exception to

the rule. Although these workers are part of the TFW Program, they do not need a
new work permit to change employers, as long as the new employer has a valid
LMIA to hire the foreign worker under the SAWP.4 Figure 3.2 provides an
overview of temporary labour migration.

Figure 3.2. Overview of temporary labour migration

no Authorised to work without a work permit

Work permit required?
(R186 of the Immigration and Refugee
yes
Protection Regulations) or under the Global
Labour market test required? Skills Strategy’s public policy
yes no

Temporary Foreign International Mobility Program

Worker Program
- Spouses of skilled - Trade agreements
High-wage temporary workers - Reciprocal
and students employment
Low-wage
- Post graduate work - Co-op internship &
Primary Agriculture - Working holiday young professional
programme (IEC) programme (IEC)
Global Talent Stream
- ... - ...

Employer pays $1000 per worker

Positive or neutral LMIA? Employer specific
Open work permit
Some* applicants pay a CAD 100 work permit
open permit holder and a CAD Some* employers pay CAD 230
155 work permit fee compliance fee (and applicants
Employer specific (permit can be restricted by pay CAD 155 work permit fee)
no employer or location) and submit job offer information
to IRCC

The foreign national applies for their work permit, is eligible and no prohibiting factors?
no yes
Refusal Work permit approved

Note: Under the TFW Program, many employers are exempted from paying the CAD 1 000 fee; for example,
positions under the TFW Program's Agriculture Stream.
*If the applicant is exempt from the requirement to pay the work permit processing fee, he/she will be exempt
from the requirement to pay the open work permit holder fee. If the applicant is exempt from the requirement
to pay the work permit processing fee, the employer will be exempt from the requirement to pay the open work
permit holder fee.
Source: OECD Secretariat with data from IRCC.

Over the last 20 years, there has been a strong increase in temporary work permits.
Numbers tripled from around 110 000 permits in 1998 to close to 340 000 in 2018
– a number equivalent to about 1% of the Canadian population.5 In particular, the
number of temporary migrants under the IMP reached unprecedented levels. They
accounted for three-quarters of work permits issued to temporary labour migrants
in 2018 (Figure 3.3). When considering only initial work permits for work purposes

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128  3. TEMPORARY LABOUR MIGRATION

in 2018, over 82% were issued under the IMP and only 18% under the TFW
Program, as most permits under the latter are renewals – especially for returning
agricultural workers.

Figure 3.3. Work permit holders by year in which permit(s) became effective and
programme (%), 1998-2018
Total numbers (left) and share by programme (right)

Total Labour market tested (TFWP) Not labour market tested (IMP)
350,000 100
90
300,000
80
250,000 70
200,000 60
50
150,000 40
100,000 30
20
50,000
10
0 0

Source: OECD Secretariat calculations based on data from IRCC.

In absolute numbers, most work permit holders concentrate in Ontario, followed by

British Columbia and Quebec. This is irrespective of the programme (TFW
Program/IMP) though, importantly, for a fifth of IMP work permits issued, the
intended location (province/territory) of work is not recorded. Relative to the
population however, foreign work permit holders are often found in Prince Edward
Island, British Columbia and Yukon, where they account for more than 1% of the
population.
As noted, an increasing number of international students adds to Canada’s labour
force. In 2018, Canada issued close to 185 000 initial study permits6, a close to
three-fold increase over ten years. However, the total number of study permits
cannot simply be added to those temporary labour migrant with work permits, and
this for several reasons. First, there are possible overlaps,7 second, not all study
permit holders benefit from these provisions8 and, thirdly, not all international
students take advantage of the working opportunities provided by their permit.
In the following paragraphs, the three groups – temporary workers under the TFW
Program, the IMP and international students – are each discussed in more detail.

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Temporary Foreign Worker (TFW) Program

Recent reforms to the labour-market-tested programme reduced the number

of permits issued
The TFW Program itself has undergone several significant reforms in recent years.9
These were motivated by concerns to streamline the programme, thereby rendering
it a last and limited resort to fill acute labour shortages and to address integrity
issues, as well as concerns about the treatment of some temporary foreign workers
(Nakache and Kinoshita, 2010[2]; HUMA, 2016[3]; CIC, 2012[4]).
As a result, Canada introduced stricter provisions for testing labour needs and
labour market impact. The current Labour Market Impact Assessment (LMIA)
requires employers to provide extensive information, such as the number of
Canadians and permanent resident workers who applied and interviewed for a
position, and reasons why interviewed candidates were not hired. A fee of CAD 275
for the LMIA was introduced in 2013 and raised to CAD 1 000 in June 2014.
A crucial change with the overhaul of the programme in 2014 was that all streams
in the TFW Program – apart from the Primary Agriculture stream and the, since
terminated, Live-in Caregiver Program (LCP) – were reorganised. They are now
based on wage levels rather than on occupational groups and skill levels. If an
employer is offering a wage that is at or above the provincial/territorial median
hourly wage, it is considered a “high-wage” position, and if the offered wage is
below the median hourly wage, it is considered a “low-wage” position. Job Bank
(see below) lists the current median hourly wage by province/territory and shows
the varying wage levels across the country (Table 3.1) The process of obtaining an
LMIA differs depending on whether the position is classified as “high-wage” or
“low-wage”.

Table 3.1. Median hourly wages in CAD by province or territory

Province/Territory 2018 wage (CAD / hour)
Alberta 26.67
British Columbia 23.98
Manitoba 21.00
New Brunswick 20.00
Newfoundland and Labrador 22.00
Northwest Territories 34.00
Nova Scotia 20.00
Nunavut 30.00
Ontario 23.08
Prince Edward Island 19.49
Quebec 22.00
Saskatchewan 24.52
Yukon 30.00

Source: IRCC online data based on Statistics Canada, Labour Force Survey, 2018.

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130  3. TEMPORARY LABOUR MIGRATION

For both wage streams, the employer needs to provide details about the job offer,
such as job responsibilities, location, working hours, pay and benefits. As part of
the LMIA, labour market impacts of the employment of the foreign temporary
worker are also assessed. For “low-wage” positions, a cap applies to limit the
number of low-wage TFWs hired by the same employer at a particular location to
a maximum of 10% of the total staff or 20% for employers who employed
temporary foreign workers in the six weeks prior to June 20, 2014, though there are
some exemptions.10 In addition, employers cannot hire TFWs in certain low wage
occupations11 requiring little or no education, in the accommodation and food
services sectors, or in the retail trade industries, when the unemployment rate in the
economic region in question is 6% or higher. “High-wage” positions are not capped,
but require a transition plan, outlining steps employers will take to transition to a
domestic workforce.
Further changes in 2014 for obtaining an LMIA stipulated that employers must
advertise vacancies for four consecutive weeks – instead of two previously. One
channel for doing so is Canada’s national online platform “Job Bank”, which
connects job seekers with job openings. It also provides a wide range of labour
market information, including the median wage of an occupation by province or
territory. As of August 2017, employers (with some exceptions) seeking access to
the “high-wage” and “low-wage” streams of the TFW Program are required to
advertise on Canada’s Job Bank and subscribe to the Job Match alert service for at
least four consecutive weeks as part of their advertising requirements. Employers
also have to demonstrate their efforts to recruit Canadian/permanent residents (see
below). The required duration of advertisement is at the high end of the scale
compared to other OECD countries (Figure 3.4).

Figure 3.4. Duration of the advertising period in the labour market test for
temporary labour migration permits, in days, 2018
35
30
25
20
15
10
5
None
0

Source: OECD Secretariat.

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 3. TEMPORARY LABOUR MIGRATION  131

“Job Match” – a feature of Job Bank – allows employers to see the profiles of
registered Canadian job seekers who correspond to the skills profile outlined in their
job postings. Jobseekers who provide an email address in their online application
for employment insurance are automatically sent an email to subscribe to Job Match
alerts. Depending on how well they match the employment offer, job seekers
receive a one out of five star rating on Job Bank. Employers are required to invite
all job seekers matched within four consecutive weeks of the job advertisement to
apply for the position if they are rated four stars or more under a “high-wage”
scenario, or two stars or more under a “low-wage” scenario.
An enhanced policy on recruitment processes was put in place in August 2017 to
further ensure that Canadian citizens and permanent residents are considered first
and foremost for available jobs. Employers seeking to hire temporary foreign
workers in “low-wage” occupations (with some exceptions) must now demonstrate
that they have made efforts to recruit from two or more underrepresented groups
that face barriers to employment (i.e., Indigenous people, vulnerable youth, persons
with disabilities, and newcomers) before they can apply to the “low-wage” stream.
Previously, employers were required to demonstrate efforts to recruit from a single
underrepresented group.
Temporary foreign workers under the TFW Program today can be grouped into the
“high-wage” positions Stream, the “low-wage” positions Stream, the Global Talent
Stream and the Primary Agriculture Stream (Figure 3.2). The Primary Agriculture
stream is currently divided into four sub-streams: The Seasonal Agricultural
Worker Program (SAWP), the Agricultural sub-stream, the High-Wage sub-stream,
and the Low-Wage sub-stream. The primary agriculture stream’s High- and Low-
Wage sub-streams are not to be confused with the “high-” and “low-wage” under
the broader TFW Program. The seasonal SAWP, where the temporary foreign
worker is a national of Mexico or participating Caribbean countries, is by far the
largest programme accounting for about three-quarters of permits issued over the
last decade. However, in 2018, initial permits – those not issued to returning
workers – under the other streams accounted for around two-thirds of permits
issued. This suggests that while the absolute new intake of the SAWP increased
modestly, the growth of the agricultural programmes between 2015-18 was driven
by a larger intake under these other seasonal and non-seasonal programmes (Figure
3.5).

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132  3. TEMPORARY LABOUR MIGRATION

Figure 3.5. Streams of agricultural workers under the TFW Program

Agricultural Workers under the TFWP

Agricultural High-Wage Low-Wage

SAWP
Stream Stream Stream

All other primary agriculture

National Commodities List
commodities

Mexico
All Countries
Caribbean

Seasonal Seasonal & Non-seasonal

Note: The primary agriculture stream’s High- and Low-wage Streams are not to be confused with the “high-”
and “low-wage” under the broader TFW Program.
Source: ESDC (2019[5]).

Since the termination of the Live-in Caregiver Program (LCP) in 2014, newly
arriving immigrants working in caregiving occupations are part of the regular
“high-” or “low-wage” streams. Overall, with the 2014 restructuring of the TFW
Program, the number of work permits issued decreased significantly although there
was a slight rise in 2018, driven by increases in the agricultural stream (Figure 3.6).
Work permits can be valid for differing durations. Participants under the SAWP
– about two-thirds of all agricultural workers in 2018 – have to leave Canada by the
15th of December each year and can only return the following year. The duration of
a work permit for “low-wage” workers outside of caregiving occupations12 has been
set at a maximum of one year. This makes – where applicable – an annual renewal
necessary. For “high-wage” workers, the duration is a maximum of two years. At
the same time, since December 2016, temporary foreign workers can remain and
work in Canada as long as they have a valid visa/work permit.13

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Figure 3.6. TFW Program permit holders with permit(s) by sign year, 2009-18

Agricultural Workers LCP Higher-skilled Lower-skilled

140000

120000

100000

80000

60000

40000

20000

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Note: Numbers show individual work permit holders by programme with a permit signed in the given year. The
Live-in Caregiver Program (LCP) ended in 2014 and foreign caregivers under the 2014 caregiver pilots take
part in the regular LMIA tested programmes. Data excludes a small number of other TFW Program holders.
Source: OECD Secretariat calculations based on data from IRCC.

The labour market test for “high-wage” positions is cumbersome

As mentioned, for “high-wage” job offers, employers must provide a “transition
plan” in which they specify how they intend on reducing their dependence on
temporary foreign workers and to transition to a Canadian workforce in the future.
This plan comes in addition to fulfilling many of the same requirements for “low-
wage” occupations. Regarding the transition plan, employers have two options –
either to help the temporary foreign worker to become a permanent resident or to
reduce the need for temporary foreign workers altogether. Regarding the latter,
employers need to provide proof of four distinct activities to recruit, train or retain
Canadians/permanent residents. Such activities notably include: raising the wages
offered, providing on-the-job training, providing paid leave for education, engaging
with headhunting firms, partnering with unions, providing part-time or flexible
working solutions, and providing financial support to relocate workers. One of these
activities has to engage an organisation serving groups that face barriers in the
labour market. Alternatively, employers can commit in their transition plan to
supporting the temporary worker into becoming a permanent resident. This can for
example entail to offer language training to support a permanent residence
application. If employers are not able to demonstrate that they have made
reasonable efforts to fulfil the commitment made in their Transition Plan, their
subsequent LMIA application may receive a negative assessment on this labour
market factor. Table 3.2 provides an overview of the LMIA, by TFW stream.

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134  3. TEMPORARY LABOUR MIGRATION

Table 3.2. Key assessment criteria by TFW Program streams

High Low Primary Global
Wage Wage Agriculture Talent
Stream Stream Stream Stream
Assessing the genuineness of the job offer x x x x
Direct job creation/retention x x x x
Transfer of skills/knowledge x x x
Filling a genuine labour shortage x x x x
Employer offers prevailing wage and acceptable working
conditions
x x x x
Employer has/will attempt to hire or train Canadians x x x x
No effects on current labour dispute x x x x
Transition Plan x
Labour Market Benefits Plan x
Verification of cap (maximum 10% of workforce, or 20% for
employers employing TFW six weeks prior to June 20, 2014)
x

Note: Employers can be banned from the TFW Program in the case of previous non-compliance.
Source: ESDC's Resource Determination Model (RDM).

It is not clear why this cumbersome process of a transition plan is in place for “high-
wage” jobs. Most OECD countries favour rather than discourage recruitment of
high skilled temporary migrants. In addition, the bulk of temporary high-skilled
employees come via the LMIA-exempt IMP which is discussed below. Under this
programme, no labour market test is required. Imposing a transition plan including
a CAD 1 000 fee for this group of temporary workers clearly incentivises
employers to find ways to switch to the non-labour market tested IMP. Changes in
volumes of the IMP in recent years suggest that this might indeed be the case.14

The Global Talent Stream facilitates temporary migration for certain

employers and occupations…
Certain temporary labour migrants who require an LMIA benefit from fast-track
processing (ten business days).15 If applicable, their subsequent visa and work
permit application can also benefit from fast-track (additional 14 calendar days)
processing if they apply from outside Canada and their employer takes part in the
Global Talent Stream (GTS) under Canada’s Global Skills Strategy (Box 3.1),
which was made permanent in Budget 2019. This preferential treatment still
requires a positive LMIA, which under the GTS includes a Labour Market Benefits
Plan (instead of a transition plan required as in the LMIA for “high-wage”
positions).
By using the GTS, employers may apply for an LMIA through two distinct
channels. They can either obtain a referral from a “designated partner” for hiring
specialised talent (Category A) or recruit for specific jobs from the Global Talent
(GT) Occupations List (Category B). Employers do not need to formally
demonstrate prior recruitment efforts of Canadians and permanent residents,
because a shortage has already been determined in these occupations.

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As of February 2019, 37 designated partners had been approved for referral to

Category A and the GT Occupations List included 12 occupations (or a subset
thereof), mostly professional occupations in natural and applied sciences.

Box 3.1. Canada’s Global Skills Strategy

Canada’s Global Skills Strategy (GSS) aims to attract top global talent to Canada by
providing work permit exemptions for high-skilled short term work, and a dedicated
service channel for employers. The goal is to provide faster and assured access to
highly-skilled foreign workers to fill job vacancies while ensuring that Canadians and
permanent residents have the first opportunity to apply for available jobs. Under the
strategy, two types of workers do not need work permits. The first group are individuals
working in highly-skilled (NOC16 0 and A) occupations for up to15 days in six months
or 30 days in a given year. The second are researchers at a Canadian publicly funded
degree-granting institution or its affiliated research institution, who will work for no
more than one 120-day period in Canada, once every 12 months.
LMIA-exempt workers qualify for two-week processing of their employer specific
work permit application if they are applying from outside Canada, if their employment
offer is either a managerial or professional job (classified as 0 or A under the NOC)
and their employer has submitted an offer of employment using the Employer Portal
and paid the CAD 230 employer compliance fee. However, applicants from the
International Experience Canada within the IMP are not eligible for this accelerated
processing and have a separate service standard of eight weeks processing time.
LMIA-required workers qualify for two-week processing of their work permit
application if they are applying from outside Canada, and have received a positive
LMIA through the GTS. The GTS was launched as a two-year pilot in June 2017, as
part of the GSS, and made permanent in Budget 2019. It facilitates two-week LMIA
processing for companies seeking unique talent, or seeking to hire foreign nationals in
occupations for which there is a shortage of domestic labour. The stream is available
for two types of Canadian employers:
 Innovative Canadian companies, that are recommended by an ESDC
Designated Partner, and seeking to fill a position(s) which requires unique and
specialised talent in order for the firm to scale-up and grow (Category A); and
 Companies seeking to hire highly-skilled foreign workers for occupations
found on ESDC’s GT Occupations List because they have been determined to
be in demand and for which there is insufficient domestic labour supply
(Category B). The list is focused on technology, engineering and mathematics
(STEM) occupations and updated annually based on labour market
information.
While the same regulations apply, the GTS has some unique elements. It provides
eligible employers with client-focused service to assist with the GTS application
process and there are no minimum recruitment requirements. As part of the application
process, an employer using the GTS is required to develop a company-specific Labour

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Market Benefits Plan that outlines their measurable commitments to create lasting
benefits for the Canadian labour market through activities such as job creation,
investment in training and skills for Canadians and permanent residents, and increased
diversity in the workforce. Progress Reviews of these Labour Market Benefits Plans
on an annual cycle help identify and measure progress on these commitments, and all
employers returning to the Stream will have their existing Plan reviewed and may be
requested to amend or expand existing commitments to make the benefits
commensurate with their usage of the Stream. The GTS requires employers to pay and
at least annually adjust the wage to temporary foreign workers ensuring equivalent
wages to Canadian/permanent resident employees hired for the same job and work
location, and with similar skills and years of experience. Under both categories,
additional salary thresholds apply. These LMIAs and the subsequent work permit
applications benefit from priority processing17. Spouses and partners of skilled workers
arriving in Canada under this Strategy can get expedited work permits to further their
own careers, ensuring that all family members are welcomed together.
As of June 2019, more than 1 300 Canadian companies, representing every province,
have used the GTS and since implementation in June 2017 over 23 900 work permit
applications were processed under the GSS. In addition, over 160 employers making
job-creating investments in Canada have also been referred to IRCC’s Dedicated
Service Channel, a pillar of the GSS. In 2018, the majority of permits that became
effective were open employment authorisations followed by computer and information
systems professionals as well as university professors and lecturers.
In 2018, over 80% of new work permits under the GSS were completed within 19 days,
while those highly skilled professionals who did not benefit from this accelerated
processing needed to wait three times as long (56 days). Work permit extensions for
high-skilled level work permits took longer, close to three months (87 days) to
complete 80% of cases.
Applications for work permit renewal from within Canada are not eligible for faster
processing under the GSS. If a temporary resident applies for renewal of his/her work
permit from within the country and their permit expires before a decision is made, they
benefit from “implied” status and may continue working under the same conditions as
their work permit, pending a decision being taken on their application for renewal, as
long as they remain in Canada.

…but most work permits remain employer-specific

As noted, temporary work permits in Canada can be either open or employer-
specific. The TFW Program by design is employer-specific. It is built around a
labour market test that requires employers – among other things – to demonstrate a
labour shortage. If a temporary foreign worker wants to change jobs or employers,
they must apply to change the conditions of their work permit, which in the cases
of most TFW Program streams includes a new job offer letter, employment contract
and a new LMIA.

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The fact that foreign workers are bound to their employers appears to be motivated
at least in part by relatively high costs of recruitment faced by the latter. At the same
time, the employer-specific work permit limits bargaining power of the temporary
foreign worker, making them dependent on the compliance of their employer. If an
employer is found non-compliant and banned, an employee risks losing their
permit.18 This does not only seriously limit the incentives to report non-compliant
employers but also potentially puts employees at risk of exploitation and abuse
(Nakache and Kinoshita, 2010[2]; Caruso, 2018[6]). However, the degree to which
this is actually the case is not known.
Other OECD countries have introduced provisions to limit the risks for temporary
labour migrants in the case of non-compliant employers. In New Zealand, for
instance, temporary foreign workers can continue to work for a non-compliant
employer for as long as their visa remains valid but cannot renew their visa. In
Korea, temporary workers (under the E-9 programme) are allowed three voluntary
changes of employers over the course of their employment period (within the same
sector and among authorised employers) but changes that became necessary due to
circumstances beyond their control (such as, an annulation of the contract) do not
count towards this number. An alternative, providing for more flexibility, would be
to link temporary permits and the labour market test to occupations and/or certain
provinces, rather than specific employers.
As employer-specific work permits limit mobility of the migrant worker concerned,
Canada announced in May 2019 a new policy for vulnerable migrant workers who
are at risk of abuse in the workplace. These temporary foreign workers can apply
for a specific “open work permit for vulnerable workers” which is LMIA-exempt
and entails the possibility to obtain authorisation to work for another employer.19

Work permit extensions involve a repetition of the process, including the

fee…
An employer can apply for several temporary foreign worker positions using one
LMIA application form but has to pay the CAD 1 000 fee for each worker.20 The
LMIA is valid for six months and within this period the temporary foreign worker
has to apply for their work permit to IRCC. Renewals of work permits under the
TFW Program involve a repetition of the LMIA-process, including the mandatory
payment of the CAD 1 000 fee for each applied position for a temporary foreign
worker. This fee is non-refundable in cases of a negative LMIA or a subsequent
negative work permit decision. The fact that for both “high-” and “low-wage”
positions, each renewal requires the same procedure as for the issuance of the initial
permit, is rather unusual in international comparison.

…and processing times for renewals are high, as are refusal rates
While permits under the GTS benefit from accelerated treatment, processing times
for permits under regular temporary high-skilled migration have increased.
Processing times vary depending on the type of application submitted; they are
updated weekly and also made publicly available. Processing times for initial high-

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skilled work permits were, in 2018, about five times longer than those for permits
under the low-skilled category. For renewals of permits, where applicants benefit
from “implied” status, processing times were much longer, and there was no
difference between higher- and lower-skilled in terms of duration (Table 3.4).

Table 3.3. Processing times of TFW work permit applications, 2015-18

Work permits requiring an LMIA by occupational skill level, duration in days
2015 2016 2017 2018
Work Permit 43 43 41 34
Higher-Skilled 71 78 89 81
Lower-Skilled 38 37 31 17
NOC is not defined 71 81 82 87
Work Permit – Renewals 114 111 110 108
Higher-Skilled 119 111 109 106
Lower-Skilled 111 110 111 107
NOC is not defined 113 111 110 109

Note: Data excludes Agricultural and Live in Caregiver Program. Processing times refer to the number of days
in which 80% of complete applications received were finalised by IRCC.
Source: IRCC (CICEDW/EDW), February 2019.

Refusals for labour market tested work visas are common. In 2018, one-third of all
work permit applications under the TFW Program (excluding agriculture and Live-
in Caregiver programmes) were refused (Table 3.4); rates were slightly higher for
low- than high-skilled occupations. In particular, renewals of work permits were
more often declined than approved. However, this is driven entirely by the fact that
virtually all applications that did not state the intended occupation were refused,
and this share was higher for renewals. It is not clear to what extent applicants are
aware of this procedure as in all years considered here, 2015 to 2018, about a quarter
of issued applications (excluding withdrawals) did not state the intended
occupation.

Table 3.4. Refusal rates of TFW work permit applications, 2015-18

High- and low-skilled TFW Program work permits, initial permits and renewal
2015 2016 2017 2018
Work Permit 18% 20% 22% 23%
Higher-Skilled 7% 7% 12% 11%
Lower-skilled 14% 17% 17% 15%
NOC is not defined 98% 97% 98% 96%
Work Permit – Renewals 55% 58% 52% 56%
Higher-Skilled 10% 11% 6% 7%
Lower-skilled 15% 14% 7% 7%
NOC is not defined 99% 99% 99% 99%
Total 37% 36% 31% 33%

Note: Data excluded Agricultural and Live in Caregiver Program. Refusal rates exclude applications
withdrawn.
Source: IRCC (CICEDW/EDW) March 2019.

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Non-compliance rates under the TFW Program are low

As part of the overhaul of the TFW Program in 2014, the number of inspections
was increased, aiming to inspect one in four employers using temporary foreign
workers annually. Inspections may occur after a positive LMIA has been issued and
the foreign worker has received a work permit and begun working. Inspections may
be conducted during a period of six years and throughout this period employers are
required to hold records – instead of two years previously. Inspectors have the
power to conduct site visits without a warrant, interview workers (contingent on
their consent) and review all 21 requirements when inspecting, compared to a
previous three.
Given the limited numbers involved, inspections are rather frequent – 2 214 in
2017-18. Overall, only about 1% of inspected employers under the TFW Program
were found non-compliant since 2015. There has, however, been a strong decline
in TFW Program inspections in the fiscal year 2018-19. Conversely, that year also
saw a larger share of non-compliant employers (5%). While outright non-
compliance is rare, many employers face difficulties in fully complying with TFW
Program regulations. Over the last four years, only 55% of employers under the
“high-” and “low-wage” stream were found compliant, whereas over 40% needed
to take action to comply with the requirements (Table 3.5). Employer correction
was also required for about 32% of the primary agriculture stream and for almost
half of the inspected employers in the caregiving sector.

Table 3.5. Completed TFW Program inspections, by fiscal year and outcome
Satisfactory (no Employer
No Decision
Fiscal Year correction correction Non-compliant Total
Entered
required) required
2015-16 748 392 0 38 1 180
2016-17 1 752 1 101 1 80 2 938
2017-18 1 057 1 086 32 45 2 214
2018-19 606 483 66 86 1 241
(19 March)
Total 4 163 3 062 99 249 7 573

Note: Data by fiscal year, and outcome April 1, 2015 to March 19, 2019. The data excludes the Live-in
Caregiver Program and Primary Agriculture programmes.
Source: Employment and Social Development Canada (ESDC)’s Foreign Worker System (FWS) and/or the
National Integrity Investigation System (NIIS) and/or the Integrity Case Management System (ICMS).

Possible sanctions for non-compliance include administrative monetary penalties

and/or temporary bans from hiring temporary workers. Perhaps even more
importantly, names and addresses of employers found non-compliant are made
public on an internet list with details of the violation and its consequences. While
this list of employers is not complete,21 it allows applicants to check if their
employer has received a positive LMIA in the past.22

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Exceptional arrangements for labour migration in the caregiving sector exist

Canada has a long tradition of temporary migration in caregiving occupations and
has established explicit links with its permanent migration stream for immigrant
workers in this sector. As a result, about one in three long-time care workers in
Canada is foreign-born, a larger share than in most OECD countries (Figure 3.7).

Figure 3.7. Over a third of long-time care workers in Canada are foreign-born
Percentage share of foreign-born among the LTC workforce in 2015 (or nearest year)
80
70
60
50
40
30
20
10
0

Note: OECD and EU are the unweighted averages of the 19 and 12 countries shown in the chart. EU-Labour
Force survey data are based on ISCO 4 digit and NACE 2 digit.1-Data are based on ISCO 3 digit and NACE
2 digit. 2-Data must be interpreted with caution, as sample sizes are small. Census 2016 for Canada.
Source: OECD (forthcoming[7]).

The Live-in Caregiver Program (LCP) established in 199223 was closed to new
applications in 2014. For over two decades, it allowed temporary labour immigrants
working in the caregiving sector to apply for permanent residency as economic class
immigrants within three (and after 2010 four) years of arrival in Canada, once they
had completed at least two years of full-time caregiving work. These employees
usually lived and worked in private households caring for children, seniors or
people with disabilities.
Participants in the LCP required only the equivalent of a Canadian high-school
diploma and six months’ full-time training or 12 months’ paid work experience as
a caregiver within the last five years prior to admission. LCs needed a positive
LMIA from ESDC to ensure no Canadians or permanent residents were available
to take the position. While initially, most LCPs transitioning to permanent residency
were principal applicants, from the mid-2000s onwards, up to one in two permanent
residents admitted under this immigration class were spouses and dependants
(Figure 3.8).

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Figure 3.8. Admissions of permanent residents under the caregiver category,

1995-2018
Prinipal applicants Spouses and dependants % Caregivers (PAs) of all labour migrants
30000 30

25000 25

20000 20

15000 15

10000 10

5000 5

0 0

Note: 2016-18 data might include small numbers of individuals admitted under the new caregiver classes.
Source: OECD Secretariat calculations based on data from IRCC.

The 2019 caregiver pilots address shortcomings of the previous programmes

After the termination of the LCP in 2014, Canada introduced two new economic
immigration pilots for caregivers as part of its permanent immigration programmes:
the Caring for Children and the Caring for People with High Medical Needs classes.
In June 2019, these pilot programmes were replaced by the Home Child Care
Provider Pilot and Home Support Worker Pilot. While the 2014 pilots are now
closed24 and have been replaced by new pilot programmes with new rules and
criteria, Canada’s experience with these pilots is nevertheless insightful.
The 2014 pilots changed the way caregivers apply for, and transition to, permanent
residence compared to the LCP. Under the LCP, caregiver applicants were assessed
for select criteria (such as official language and education requirements) at the
temporary stage, before they arrived in Canada. While temporary resident intake
was not limited, transitions to permanent residence were. This created a large
backlog of applicants who qualified but were unable to transition. In contrast, to
qualify for the 2014 pilots, caregivers needed to have worked in Canada already for
24 months in an eligible occupation. The assessment of skills and selection was then
done upon application for permanent residence. Hence, foreign national caregivers
first entered Canada as any other temporary foreign worker coming under the TFW
Program. Depending on the wage offered, they were part of either the “high-” or
the “low-wage” stream and a positive LMIA was required to obtain their employer-
specific work permit. Unlike the former LCP, but similar to other economic
immigration programmes, they were not assessed for their ability to economically
establish as permanent residents (e.g. official language, education) at the temporary
stage. Interested temporary foreign worker caregivers could only apply for
permanent residence after they obtained the relevant work experience and met all
applicable permanent residence requirements. Compared with the former LCP, the
live-in requirement was removed, and the programme criteria were modified to

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more closely align with the approach of selecting economic immigrants on the basis
of their ability to become economically established in Canada.
While the LCP only required high school education, the minimum education
requirement had been raised to at least one-year Canadian post-secondary credential
or equivalent under the 2014 caregiver pilots. In addition, applicants needed to
prove language skills equivalent to CLB 5 for the Caring for Children and a varying
minimum language level for a job under the Caring for People with High Medical
Needs programme. The latter could be as high as CLB 7, depending on the specific
requirements of the various occupations under the second programme. Since
December 2017, families or individuals who hired a caregiver to care for persons
who require assistance due to physical or mental condition, and to provide child
care for individuals and families with an income below CAD 150 000 per year,
have been exempted from paying the CAD 1 000 LMIA-fee. However, and in
contrast to seasonal agricultural jobs, caregiving jobs still had to be advertised on
Job Bank for four consecutive weeks. Employer-specific work permits were issued
for two years to caregivers. Given that there has often been a time interval between
arrival and taking up the job, this often implied a renewal to allow transitioning to
permanent residence.
Both pilot programmes allowed for a capped number of permanent residence
applications to be received by IRCC for processing annually (2 750 under each
programme as for all immigration classes established through Ministerial
Instructions). However, and in contrast to their predecessor, the 2014 caregiver
pilots were under-subscribed. In 2017, Canada admitted only 1 875 economic
immigrants as caregivers under the new programmes (principal applicants and their
dependants), compared with combined cap of 5 500 principal applicants alone
(IRCC, 2018[8]).
While a report by the Canadian Bar Association suggested that the reason for the
low take-up were the enhanced education and language requirement (Caruso,
2018[6]), data on caregivers’ education characteristics do not support this idea. In
2014, about 62% of principal applicants admitted as permanent residents under the
LCP in that year (over 7 000 out of 11 320 for whom this data is available) had at
least a Bachelor’s degree. This stands in sharp contrast to the 1990s, where only
about 5% of caregivers had such a degree (Kelly et al., 2011[9]). However, already
in 2007 the share of caregivers holding a Bachelor’s degree and above had risen to
above 60%, suggesting that the trend towards higher qualification of caregivers
started prior to the introduction of the pilot programmes. It is nevertheless unclear
to what extent the language requirements might have prevented caregivers to
qualify for the two pilot streams.
A second reason for under-subscription outlined in the report might be alternative
pathways for caregivers. They may qualify for the PT-programmes as well as for
the federal high-skilled programmes under Express Entry (Caruso, 2018[6]). For
example, higher-skilled caregivers (NOC 3012 and 3233) can also qualify for the
CEC, and several provinces have specific programmes to attract individuals in
caregiving occupations. Such alternative channels have the advantage for the

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migrant that they are permanent from the start, and thereby allow not only for full
occupational mobility after admission but also for migrating as a family. Between
2016-18, about 2 700 higher-skilled caregivers (registered nurses, licenced
practical nurses and nurse aides, orderlies and attendants) became permanent
residents through the PNP and the programmes managed under Express Entry,
compared with only about 170 under the 2014 caregiver pilots. That
notwithstanding, both pathways – CEC and PT-programmes – are not new, and can
thus hardly explain the low take-up of the 2014 programme.
A more likely reason, however, is the uncertainty regarding transitioning from
temporary to permanent residence. Indeed, this is one of the changes in the new
2019 pilot programmes – the Home Child Care Provider Class and Home Support
Worker Class. Applicants will be assessed for permanent residence criteria before
they begin working in Canada, providing a clearer and more assured pathway to
permanent residence. Once caregivers have their work permit and two years of
eligible work experience, they will have access to a direct pathway to permanent
residence. As a response to the alternative – and more attractive – pathways for
higher-skilled occupations in the caregiving sector, the 2019 caregiver pilots only
target in-home caregiving occupations at a lower-skill level (NOC 4411 and 4412,
excluding housekeepers). The educational requirement of one-year of Canadian
post-secondary education (or the foreign equivalent) introduced in the 2014 pilots
is maintained, and the language requirement has been set at CLB 5 for both
occupations. The 24 months of full time work experience must be acquired within
a 36 months period.
The new pilots also include further changes. Most importantly, the work permit
caregivers receive is an occupation-restricted open work permit, which lets them
work as a caregiver for almost any employer throughout Canada (excluding
Quebec). It provides caregivers with the possibility to change jobs quickly. In
addition, under the new programmes, caregivers can apply for open work permits
for spouses/common-law partners and for study permits for dependent children.
This allows the caregiver’s family to accompany them to Canada from the start.
Finally, employers will no longer need an LMIA before hiring a caregiver,
facilitating their recruitment.

Skill-selective access to permanent residence in caregiver categories would

increase the programmes flexibility
Overall labour market outcomes of labour immigrants under the caregiving
programmes and those of their spouses and dependants are favourable. Data from
the IMDB – notably based on previous cohorts, admitted under the LCP – suggests
that 95% of principal LCP-applicants report earnings in the first year of landing and
over 90% throughout the ten years after. What is more, following the year of
landing, over 95% of LCP’s spouses and dependants are working, in contrast to
only about 60% among the spouses of federal skilled workers. While the income of
caregivers remains below the levels of most other (permanent) labour migrants the
income gap to their spouses and dependants is much smaller than for any other
group of economic immigrants. What is more, the earnings of spouses and

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dependents of caregivers are well above the earnings of spouses and dependants
accompanying other labour migrants (Figure 3.9).

Figure 3.9. Median earnings by years since landing, Live-in Caregivers and
economic labour migrants and their spouses and dependants, landing cohort of 2006

Economic Immigrant, PA Caregiver,PA Economic Immigrant, SD Caregiver, SD

60,000

50,000

40,000

30,000

20,000

10,000

0
0 years 1 years 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years
since since since since since since since since since since since
landing landing landing landing landing landing landing landing landing landing landing

Source: IMDB, 2016.

In this context, the gendered nature of the caregiving sector is revealing. Over 90%
of caregivers are women25, compared to other permanent economic immigration
programmes where the majority of principal applicants are men. Under all
admission classes, male spouses and dependants who report earnings have higher
median earnings than female spouses and dependants. Still, male spouses and
dependants of caregivers have median earnings exceeding those of male spouses
and dependants of federal skilled workers/federal skilled trades. However, the
opposite holds for female spouses and dependants of caregivers.
One challenge of the caregiver programme is the fact that many caregivers leave
the occupation once they become permanent residents (Banerjee, Kelly and
Tungohan, 2017[10]). At the same time, and partly a result of this, caregiving
occupations continue to be in high demand across Canada. In March 2019, the
national job online platform for job search and matching Job Bank listed over
2 800 vacancies for the term “caregiver”.
One option to remain the quality of selection but increase its flexibility would be
by introducing a points system balancing educational and language skills with
duration of work experience in the caregiving sector in Canada. Thereby, caregivers
with somewhat lower skills would be required to remain longer in their profession
to earn permanent residence.

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A new pilot in the agri-food sector will test an industry-specific approach to

address structural low-skilled labour needs
In July 2019, Canada announced a new 3-year economic immigration pilot, the
Agri-Food Immigration Pilot, which aims to fill structural labour shortages
particularly in meat processing and mushroom production. The programme aims to
attract and retain workers experienced in these occupations by providing them with
permanent residence.
Temporary foreign workers who meet the criteria will be able to apply under the
new pilot starting in 2020. Applicants require 12 months of full-time, non-seasonal
Canadian work experience in the TFW Program, in an eligible occupation in
processing meat products, raising livestock, or growing mushrooms or greenhouse
crops. In addition, they require at least a Canadian Language Benchmark level 4 in
English or French and an education equivalency of Canadian high school level or
greater. Finally, applicants need an indeterminate job offer for full-time non-
seasonal work in eligible occupations in Canada, outside of Quebec, at or above the
prevailing wage.

International Mobility Program (IMP)

High growth, driven by a few admission categories

Figure 3.10. IMP work permit holders by initial sign year and programme, 2007-18

Agreements PGWP IEC Spouses Other Canadian Interests

200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Note: The number of permit holders by initial sign year differs from often published data on the number of
permit holders by sign year as the latter includes both initial permits and renewals. Post-graduation work permit
holders (PGWP) are sometimes disregarded in initial permit statistics as they in most cases had a previous
(study) permit. For the purpose of comparing their “inflow” and as study permit holders are not included in this
graph for previously outlined reasons, initial PGWP are included here.
PGWP, Working Holiday programme participants – one group (with the largest volume) of International
Experience Canada work permit holders (IEC) and spouses are able to apply for an open work permit.
This figure does not include work permit holders for other reasons such as permanent residence application,
humanitarian reasons and the category other.
Source: OECD Secretariat calculations based on data from IRCC.

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146  3. TEMPORARY LABOUR MIGRATION

The IMP, as the second umbrella programme for temporary work purposes, aims to
advance Canada’s broad economic, social and cultural national interests. Hence,
individuals under the IMP do not need to pass a labour market test and are allowed
to work either based on agreements or because their presence and ability to work is
otherwise deemed to present a specific Canadian interest.
Initial work permits issued to individuals per year under the IMP more than doubled
over the last decade (Figure 3.10). The growth has been largely driven by few
groups of temporary workers. This includes in particular three groups, post-
graduation work permits (PGWP) holders, individuals with permits under the
International Experience Canada (IEC) programmes, and permits for spouses of
skilled workers and international students.26 The number of work permits under the
category Agreements increased until 2013 and since then declined to its level from
about a decade ago. This category includes intra-company transferees and
professionals benefitting from provisions under international agreements such as
free trade agreements between Canada and other countries (NAFTA, CETA, and
going forward also CPTPP).
Since 2015, employers hiring through the IMP have to submit information to IRCC
relating to their offers of employment via an online platform called Employer Portal
and to pay an employer compliance fee of CAD 230 per work permit. In addition,
the foreign worker has to pay a CAD 155 work permit fee. In the case of open work
permits under the IMP, for example the working holiday programme of the IEC,
which are not tied to a specific employer, an earmarked CAN 100 open work permit
holder fee is collected from the applicant to fund the collection of employment
information related to such permits.

Youth participating in temporary working programmes

Like many OECD countries, Canada runs federal programmes for foreign national
young adults to work and travel temporarily in the country. The International
Experience Canada (IEC) programme admits foreign nationals of selected countries
on the basis of bilateral agreements, – for up to 24 months27. To be eligible,
applicants need to be aged between 18 and 35, while for few countries and
programmes the age limit is 30 years28. In most cases renewals are not possible for
the same programme; however, applicants can apply for a new permit under a
different programme within the IEC. The IEC stream combines three main
programmes, and Canada sets annual quotas per country and category (IRCC,
2019[11]).
Individuals under the Working Holiday programme, the large majority (86%) of
permits issued under the IEC, usually intend to travel in Canada and take-up
temporary paid employment to help pay for their trip and living expenses. They
need to pay a participation fee of CAD 150 and an open work permit holder fee of
CAD 100. Participants of this programme receive an open work permit. This allows
them to work in most jobs in Canada, change employers whenever they want or
need to, and travel freely throughout the country. Evidence from New Zealand
suggests that participants in this scheme from lower-income countries work more

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hours than those from high-income OECD countries. This raises the question
whether the primary intention of the former may be employment rather than travel
(OECD, 2014[12]). For Canada the number of hours participants of working holiday
programme worked are not available. However, tax reported median earnings in
2015 of IEC open work permit holders (a close proxy for participants of the working
holiday programme) suggest that youth of Australia and Ireland reported the highest
earnings in Canada and those from Germany the lowest. In contrast, youth from
Chile report an income that is close to the average of all countries.
The second category within IEC is the International Co-Op programme, which
enables foreign youth enrolled at a post-secondary institution to gain work
experience in Canada related to their field of study, usually in the form of an
internship. The third category is the Young Professionals programme, under which
youth are able to gain professional work experience after completion of their
studies. Under both programmes, applicants need to have a valid job offer in Canada
to be eligible to apply and need to prove a direct link to their field of study. If issued,
their work permits are employer-specific. The participation fee in each of the
programme is CAD 150 and in addition, employers need to pay the
CAD 230 Employer Compliance fee online via the Employer Portal.
Initial permits to participants of the working holiday programme increased slightly
over the past decade, but overall numbers are lower than in comparable OECD
countries (Figure 3.11). These programmes are reciprocal but participation of
Canadian youth abroad under such programmes has been low (IRCC, 2018[8]). This
reflects experiences in other major working holiday recipient OECD countries.

Figure 3.11. Initial permits to working holiday makers in selected OECD countries,
2010-17

United Kingdom Canada New Zealand United States Australia

300

250

200

150

100

50

0
2010 2011 2012 2013 2014 2015 2016 2017
Source: OECD International Migration Database (https://stats.oecd.org/Index.aspx?DataSetCode=MIG)

Australia runs the largest working holiday programme in the OECD in absolute
terms while relative to the population, the largest is that of New Zealand. Both are
very similar to the Canadian one but a key distinction is that in both countries, the

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programmes are a key feeder for transition to permanent residency. This is less the
case in Canada were administrative data indicates that 7% of IEC foreign youth
who came to Canada under the IEC Programme (combining the outlined three sub-
programmes of which the working holiday is one) between 2013-17 have since then
permanently immigrated to Canada (IRCC, 2019[11]). A further distinction is that in
contrast to the Canadian set-up, the Australian programme includes an extension
possibility which in some circumstances allows for a third year for young workers
who commit to stay in regional areas during their second year.

Non-compliance rates under the IMP are low

Table 3.6. Completed IMP inspections by fiscal year and outcome
Compliant with
Fiscal Year Compliant Non-compliant Total
Justification*
2015-16 116 4 1 121
2016-17 461 81 10 552
2017-18 2 929 453 42 3 424
2018-19 2 759 345 28 3 132
(31 Dec. 2018)
Total 6 265 883 81 7 229

Note: Data by fiscal year, and outcome April 1, 2015 to December 31, 2018. *Compliant with Justification:
Employers who have provided justification, and compensation when required, in accordance with the
Regulations to justify their non-compliance.
Source: Data compiled from ECIU Master Tracker provided from ESDC.

Programme inspections aim to protect temporary foreign workers and ensure that
employers use the IMP properly. On behalf of IRCC, Service Canada inspects
employers against the conditions listed on the work permit of their employees and
the details of the offer of employment that employers previously submitted to
Service Canada. This entails that employers meet all applicable employment and
recruiting laws, as well as co-operate with Service Canada by showing up for
inspections and providing all required documentation. Employers must keep any
documents they have about the employment of their temporary worker for six years
from the date Service Canada issued their work permit.
Overall compliance with the IMP is high, and only 1% of all inspected employers
were fond non-compliant. An additional 12% needed to provide justification and/or
compensation since the start of the fiscal year 2015 (Table 3.6).
Penalties for non-compliance depend on the severity of the non-compliance and are
decided by a points system. This looks, among other aspects, at the number of
violations, the compliance history, the number of workers negatively affected by
the violation, and for monetary penalties also at the size of the business. Possible
sanctions for non-compliance include warning letters, monetary penalties from
CAD 500 to CAD 100 000 per violation up to a maximum of CAD 1 million over
one year. It can also include a ban from hiring temporary workers through the
programme for one or several years and for serious violations a permanent ban from

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hiring. In addition pending work permit applications tied to the business might be
refused and active work permits revoked.
As for the TFW Program (see above) the names and addresses of employers found
non-compliant under the IMP regulations are made public on an online list. This
list states the reason for their non-compliance, the amount of monetary penalty – if
applicable – and if they remain eligible for hiring temporary foreign workers under
the programme in the future.

International Students

Strong increase in international students in parallel with expanded working

possibilities
The number of international students enrolled in Canada is not particularly high in
international comparison (Figure 3.12). However, among the major recipient
countries of international tertiary students,29 Canada experienced the largest growth
in recent years. The numbers doubled between 2008-16, whereas for the OECD as
a whole the increase was about 70%. In 2016, Canada hosted more than one in 20
international tertiary students in the OECD and around one in eight tertiary students
in Canada was an international student.

Figure 3.12. International tertiary students enrolled in OECD countries, 2016

Total 1000 (left) % of internatonal students among all tertiary education (right)
47 971
500 25
450
400 20
350
300 15
250
200 10
150
100 5
50
0 0

Source: OECD Education at a Glance (2018[13]).

While international students do not necessarily constitute labour migrants per se,
many countries offer them work permits to help them defray the costs of their
education and to get a first foothold into the labour market. Countries are also
increasingly providing facilitated pathways to residence, motivated by the fact that
international graduates with host-country qualifications are essentially pre-
integrated. Canada is no exception in this regard and provides possibilities for
international students to work during and after their studies (via a post-graduation
work permit) and a pathway to transition to permanent residence (Box 3.2).

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Since 2014, international student visa holders in Canada have opportunities to work
on campus and work off campus without an additional work permit. There are no
restrictions in terms of hours related to on campus work, and international students
may work off campus up to 20 hours a week during term times and full time on
regularly scheduled breaks. In 2015, over 25% of international students reported
earnings through on and/or off campus employment, up from 12% in 2004.
International students may also access Co-Op or internship opportunities while
studying provided that the work component is part of the academic programme (see
above). In recent years, the number of Co-Op work permits issued for such purposes
has increased.
Canadian data suggest that this strong increase of international students is still
ongoing. The number of initial study permits issued in 2018 – excluding those for
attendance in primary and secondary schools –, was around 185 00030, an over 50%
increase from 2016.
Most international students in Canada are citizens from either India or China. While
from the late 1990s until 2016 over half of all international students came from
China, numbers of Indian students have doubled since and in 2018, Canada issued
one in three new study permits to Indians (Table 3.7). Numbers of international
study permit holders who are citizens of Vietnam, Iran and Bangladesh also
increased strongly over the past three years.

Table 3.7. International students by citizenship and sign year, 2015-18

2015 2016 2017 2018
India 31 965 52 705 83 220 107 650
China, People's Republic of 65 900 76 975 82 905 85 735
Korea, Republic of 14 740 15 940 16 720 16 960
France 11 860 11 840 13 255 13 555
Vietnam 2 830 5 325 9 915 12 470
Other citizenship 91 880 101 890 109 975 121 215
Total unique persons 219 175 264 675 315 990 357 585

Note: These data include initial permits and renewals.

Source: IRCC 2018.

In this respect, it is important to note that Canada runs an expedited study permit
processing programme available to legal residents of India, China, the Philippines
and Vietnam who are living in one of these four countries and want to study in
Canada at a post-secondary designated learning institution. As part of this Student
Direct Stream (SDS) applicants need to meet specific requirements by providing
upfront documentation and enjoy accelerated processing (see below).
International students mostly intend to live in Ontario (49%) and the larger cities in
other parts of the country. At the end of 2017, 27% of international study permit
holders concentrated in Toronto, and another 18% in Vancouver. 92% of
international students whose permit was issued in the last four years intended to
stay in a central metropolitan area – an area with a total population of at least

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100 000 – a share almost identical than among the 2011-16 cohorts of labour
immigrants (91%).
Almost one in three international students are in a subject in the field of business,
administration and law, which is also the most popular field of study among national
students, though at a lower share (23%). In comparison to the Canadian population
however, international students are much more likely to study subjects in the fields
of engineering, manufacturing and construction (20% against 11%) as well as
subjects in the field of information and communication technologies (6% against
3%). In contrast, international students are less likely than Canadians to study
education, health or welfare (Figure 3.13).

Figure 3.13. Field of study of international and national tertiary level students, 2016
Education Arts and humanities
Social sciences, journalism and information Business, administration and law
Natural sciences, mathematics and statistics Information and Communication Technologies
Engineering, manufacturing and construction Agriculture, forestry, fisheries and veterinary
Health and welfare Services

National Students

International
Students

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: OECD Education Database

(https://stats.oecd.org/Index.aspx?DataSetCode=EAG_ENRL_MOBILES_FIELDS).

Possibility to work is a key driver for deciding to study in Canada

According to a 2018 survey of the Canadian Bureau for International Education,
62% of international post-secondary students stated that they chose Canada because
of the possibility to work during their studies. However, among these students, less
than half (43%) were actually employed at the time of the survey. What is more,
the main source of income was on-campus work. Among those who did not yet find
employment, a key challenge was limited work experience (52%), not finding an
appropriate employment (37%) and limited time resources (33%). 13% of
international students indicated that Canadian employers did not understand that
they are legally allowed to work in Canada based on their study permit. While
employment possibilities were key for post-secondary students, among all students
the top three reasons to study in Canada were the reputation of the educational
system, the reputation as a tolerant and non-discriminatory society, and Canada
being a safe destination. Almost three in ten international students in Canada had
also applied to other countries before deciding to study in Canada. Among those,
54% applied to the United States, 22% to the United Kingdom, 15% to Australia
and 13% and 10% to France and Germany, respectively (CBIE, 2018[14]).

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In terms of attractiveness for university students more generally, a recent study

ranks Canada eighth among 35 OECD countries, surpassed by the United States
and Australia as well as a number of European countries (Switzerland, Germany,
Norway, Finland and France). While this still places Canada in the top quarter of
countries, this is a lower position than for temporary labour migrants with master’s
degrees or higher, discussed below (Tuccio, 2019[15]). One of the reasons for
Canada’s lower ranking are the country’s relatively high study fees for international
students which are above the rates for domestic students (Figure 3.14). Those costs
add to the high living expenses in the country especially for housing.

Figure 3.14. Annual average tuition fees charged by public tertiary educational
institutions to foreign students in USD, 2015/16

Bachelor's or equivalent Foreign students Master's or equivalent Foreign students

20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0

Note: For New Zealand, estimates include universities only and exclude second programmes at ISCED 6, such
as postgraduate certificates and diplomas. Year of reference for Korea 2016; United States 2011/12; Australia,
Austria, Switzerland 2014/15; Israel 2013/14. Tuition fees for foreign students in Denmark and Sweden refer
to students from outside the European Economic Area or the European Union.
Source: OECD (2018[13]).

Approval rates have slightly declined but vary by province and programme
as do processing times
Study permit approval rates vary greatly by the level of study and province/territory
of destination. Overall approval rates for study permits for all school types have
gradually declined over the past five years from 72% in 2014, to 66% in 2018.
While between 2014-18, over 70% of all study permit applications in
British Columbia were approved, the approval rate was much lower in the Atlantic
Provinces. Furthermore, Saskatchewan saw the steepest decline in its approval rate
over the past five years from 67% in 2014 to just 44% in 2018.

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Table 3.8. Study permit approval rate in % by province, 2014-18

2014 2015 2016 2017 2018
Alberta 65 64 63 63 65
British Columbia 80 79 80 73 73
Manitoba 68 67 58 56 62
New Brunswick 58 55 49 46 48
Newfoundland 64 63 60 61 61
Nova Scotia 77 73 66 65 67
Ontario 69 69 69 67 68
Prince Edward Island 59 63 48 50 56
Quebec 73 71 66 64 58
Saskatchewan 67 64 53 49 44
Total 72 71 69 67 66

Note: Shares include initial permits issued to all study programmes.

Source: IRCC (CICEDW/EDW) as of April 10, 2019.

Approval rates also varied by study programme. While most permit applications for
doctorate programmes were approved – approval rates of over 80% in most
provinces and years – rates were much lower in particular for study permit
applications to college programmes and
Processing times for study permits vary by place of residence. Information by
country and permit are publicly available online and regularly updated. The service
standard for SDS processing is 20 calendar days.31 Processing starts after receipt of
a complete application and biometrics.

Common issues for the management of temporary labour migration

Attracting Talent

Canada is an attractive destination for highly educated workers from

abroad
For the high-skilled sought-after talent the job market is increasingly global and
Canada is an attractive destination for labour migrants from around the world. A
recent OECD study on indicators of talent attractiveness places Canada in fifth
position – after Australia, Sweden, Switzerland and New Zealand – among OECD
countries for its overall attractiveness to workers with masters/doctoral degrees
(Figure 3.15). This index considers a prospective migrant with a valid and skill-
adequate job offer from the destination country. In the case of Canada, the index
assesses the attractiveness of the “high-wage” stream under the TFW Program.

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154  3. TEMPORARY LABOUR MIGRATION

Figure 3.15. Attracting Talent indicators for workers with master/doctoral degree,
2019

0.7

0.6

0.5

0.4

0.3

0.2

Source: Tuccio (2019[15]).

In addition to considering the countries migration policies, the ranking takes into
account employment and earning opportunities as well as non-pecuniary factors
(such as possibility for family migration) and amenities. With regard to seven broad
factors considered as key influences on migrants’ decision-making where to move
to, Canada ranks within the top quarter when considering migrants’ future
prospects, inclusiveness and the quality of life. It also ranks high for the quality of
opportunities, migrants’ income, and its skills environment. The only factor where
Canada takes a position below average is “family environment”.32

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Labour Market Impact

Changes in labour market tested permits correlate with regional

unemployment
Figure 3.16. Change in unemployment rate and labour market tested work permit
levels 2009-18

Change in percentage points and total of LMIA-tested permits

Unemployment rate (left) LMIA-tested permits in 1 000 (right)

5 50
4 40
3 30
2 20
1 10
0 0
-1 -10
-2 -20
-3 -30
-4 -40
-5 -50
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

Note: Data excludes permits to Agricultural workers and Live-In Caregivers.

Source: OECD Secretariat calculations based on data from IRCC and Statistics Canada.

One would expect the numbers of labour market-tested temporary work permits to
change with labour market needs. Not considering the years 2014/2015, which were
outliers due to the programme tightening, one indeed observes that periods of
growing unemployment tended to be associated with lower intakes, and vice versa
(Figure 3.16).
Across Canada, the number of labour market-tested temporary foreign worker
permits issued outside of agricultural and live-in Caregiver programmes
corresponds to just 0.14% of the labour force on average between 2015-18. This
share varies from 0.6% in Prince Edward Island to 0.07% in Ontario. In the four
years since the overhaul of the programme, the share increased in New Brunswick,
Quebec, Ontario and British Columbia, and declined in Saskatchewan and Alberta
(Figure 3.17).33

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Figure 3.17. Labour market tested work permit holders as share of labour force
(LF) and unemployment rates, by region 2015-18

Permits/Labour Force Unemployment rate

2015 2016 2017 2018

0.8 16
0.7 14

Unemployment rate in %
0.6 12
Permits/Labour Force

0.5 10
0.4 8
0.3 6
0.2 4
0.1 2
0 0
NFL PEI NS NB QU ON MA SA AB BC

Note: Data excludes Live-in Caregiver Program and Agricultural Streams. In total for about 15% of work
permits issued under the TFW Program the intended province/territory was not stated.
Source: OECD Secretariat calculations based on data from IRCC.

The evolution in regional unemployment rates in recent years shows a negative

correlation between unemployment and the number in labour market tested
temporary worker permits relative to the labour force in the following year. In other
words, unemployment in a region correlates with a decline in TFW Program permits
issued the following year. The correlation at the regional level is not necessarily
stronger than that observed at the national level and the conclusions that can be
drawn from this correlation are limited. The overall share of LMIA-tested permits
outside of agriculture and foreign caregivers is small in relation to the labour force,
and also in relation to the non-labour market tested permits under the IMP. The
relatively recent introduction of the changes and missing data on the location of a
subset of these permits provides additional limitations. Finally, the occupations
temporary workers are targeted for might constitute a specific sub-set of
occupations by region and thus relate differently to overall provincial
unemployment rates.

Missing information on IMP work permit holders hampers assessment of

their labour market impact
Analysis of the labour market impact is even more difficult with respect to the IMP,
which accounts for the majority of temporary workers. Key to assessing the labour
market impact of temporary workers is information on their occupational profiles.
However, intended occupation is only registered for occupation- and/or employer-
specific permits and largely missing on open work permits where providing such
information became optional in 2012. Hence in 2018, only about 31% of work
permits issued to temporary migrants admitted under the IMP contained
information on the intended province and occupation. For close to a quarter of IMP
permits, the intended province/territory was not stated, up from only 10% of permits

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where this was the case in 2015. As noted, there has been a large increase in recent
years in the number of work permits issued under the IMP and between 2015-18,
this increase was largely driven by permits where very little information is collected
(+66%), while the increase in permits with stated intended occupation was more
moderate (+12%). Among these where data was available for 2018, 93% were
classified as higher skilled – usually requiring at least two years of post-secondary
education.
For open work permit holders34, Canada is able to capture data on the province and
industry of employment only after several years via linking tax filing data with other
databases in the recently introduced Canadian Employer-Employee Dynamic
Database (CEEDD). For a large share of open work permit holders of 2015 – the
latest year available – the province/territory (40%) and/or industry (42%) is not
stated. These are individuals who did not use their work permit to find employment
or who tried but did not find employment.
Among those open work permit holders for whom information is available, more
than four in five work in Ontario (37%), Alberta (20%) or British Columbia (23%).
Among those were the industry of employment is stated, more than half work in a
lower-skilled jobs – based on the NOC classification – such as in retail trades and
administrative and support services. The largest number of work permit holders
(22% among those were information is available) worked in accommodation and
food services (NOC 72).
With the limited information on the regional and occupational intentions of these
temporary migrants, assessing their labour market impact is challenging and, given
the importance of this group and their likely concentration in certain areas and
occupations, calls for a closer monitoring in the future. A first step in this direction
has been taken with the Canadian 2019 Budget, which commits money for the
ongoing collection of labour market information related to open work permits.

Labour market impact of international students is hard to monitor

As international students can work without an additional permit their impact on the
labour market is difficult to monitor. Upon graduation they can apply for a post-
graduation work permit which is an open work permit. This entails the above
discussed limitations on monitoring the timely labour market impact of
international graduates despite the strong increase of international students in recent
years.
Estimates suggest that in 2016, international students contributed over
CAD 5.5 billion to the Canadian economy (IRCC, 2018[8]). This is about 0.7% of
GDP in 2016, or the equivalent of 14.5% of the country’s service exports (Roslyn
Kunin and Associates, 2017[16]). While sizeable, this is somewhat lower than the
estimates for New Zealand, about 2% of GDP (Infometrics, 2016[17]), and Australia
about 1% of GDP (Australian Government, 2015[18]).

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Intended occupations by region overlap among labour market tested and

non-tested streams
Across Canada, about 51% of TFW Program permit holders predominantly work in
agriculture, and a further 11% in the caregiving sector.35 The remaining share is
dispersed across a broad range of other occupations, predominantly lower-skilled.
For IMP work permits, the picture is less clear-cut, as the information on intended
occupation is not available for more than two-thirds of all permits – notably in the
case of open work permits. Among the remainder, more than 90% are higher-
skilled. In other words, the limited information at the federal level suggests that the
two programmes target rather different occupational profiles.
As mentioned, information on the province is missing in many cases. For the
permits with available information, it seems – in contrast to the observation at the
federal level – that both programmes are sometimes used for catering similar
occupational needs within provinces. For example, over the 2015-18 period,
2890 permits under the IMP and 3095 permits under the TFW Program were issued
to individuals intending to work in British Columbia as a graphic designer and
illustrator (NOC 5241). Similarly, 190 permits under the TFW Program and
195 under the IMP were issued to individuals intending to work as cooks in Nova
Scotia. Likewise, 185 permits were issued to transport truck drivers in Manitoba
under the TFW Program and 635 for the same intended occupation and province
under the IMP.

Transition

Onshore transition has increased substantially in Canada

Historically, Canada – like the other settlement countries (Australia, New Zealand
and the United States) have drawn a firm distinction between temporary and
permanent migrants, with most immigrants arriving in the past receiving permanent
residence on arrival and rather few migrants transitioning onshore from temporary
to permanent status. By contrast, in European OECD countries as well as in Japan
and Korea, migrants receive the right to permanent residence typically after
completing a number of years in the country on temporary visas, with transition
being in many cases the standard and expected procedure.
In Canada, transition has become gradually wider-spread since the early 1980s. The
Foreign Domestic Movement Program (the predecessor of the Live-in Caregiver
Program) in 1981 established, for the first time, a built-in pathway to permanent
residence for temporary workers. Onshore transition accelerated during the second
half of the 1990s, when the start of the PNP allowed provinces and territories to
nominate candidates for permanent residency in their province. Many of these had
previous local work experience or education and indeed, within the PNP, transitions
account for a much larger share than among the FSW (74% of all PNP admissions
in 2016 compared with 41% in the FSW). Furthermore, the introduction of the
Canadian Experience Class (CEC) in 2008 provided a general pathway to
permanent residence for migrants with at least one year of skilled work experience.

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From 1990 to 2006, only around 23% of all migrants landing as permanent
economic immigrants had prior Canadian experience (Hou and Bonikowska,
2016[19]). These figures have increased since and in 2017, almost 60% of principal
applicants in the economic category admitted that year had a previous permit under
the TFW Program or the IMP.36 Linked data on newly-admitted permanent labour
migrants show that the majority had only a prior work permit, and direct transitions
of graduates – i.e. without additional work experience – are rare (Figure 3.18).

Figure 3.18. Admissions of permanent labour migrants (principal applicants in

economic classes) by previous permits, 2006-16
Total numbers by type of previous permit (left) and share among all labour immigrants in data
(right)
Study permit(s) only Work permit(s) only Work and study permits

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Note: Total numbers include principal applicants in the economic classes. Data includes only those immigrants
filing income tax in their year of landing.
Source: Statistics Canada. IMDB 2016.

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Various pathways to onshore transition exist

Figure 3.19. Transition paths for temporary workers to permanent residence
through economic programmes

Express Entry
International students
Pool

Provincial
Temporary work permit
Nominees
holders
High-skilled Federal Economic
Lower-skilled Pilots

Temporary residence Permanent residence

Note: After graduation, international students can obtain a post-graduation work permit. These are generally
part of the high-skilled temporary work permit holders. Federal Economic Pilots include the Atlantic
Immigration Pilot, the Rural and Northern Immigration Pilot, the Agri-Food Immigration Pilot and the two
Caregiver Pilots.
Source: OECD Secretariat.

Several pathways for transition to permanent residency exist (Figure 3.19). Not
surprisingly, the IMP is the key driver for transitions to permanent migration. In
2018, over 90% of admissions of permanent residents under economic class who
had a prior work permit in Canada did so under the IMP. This share continuously
increased over the last decade relative to the work permit holders under the TFW
Program. In 2018, of the about 53 000 transitions from temporary work permit
holders for work purposes to economic migration categories, about 49 000 passed
through the IMP (Figure 3.20).

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Figure 3.20. Admissions of permanent residents under economic class with prior
work permit holder status

Temporary Foreign Worker Program International Mobility Program

60000

50000

40000

30000

20000

10000

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: OECD Secretariat calculations based on data from IRCC.

Data from 2016 suggests that only about half of transitions came through the post-
graduate route. Transitions from the IMP mainly occurred to the PNP (44%),
followed by FSW (34%) and Canadian Experience (20%). Among workers under
the TFW Program, Canadian Experience (40%) was the main pathway, followed by
FSW (26%). Interestingly, provincial nominations were much less common among
the temporary foreign worker transitions – they accounted for less than 16% of the
total.
The apparent shift to onshore migration in Canada can be compared to New Zealand
in the late 1990s and early 2000s, where the increased transition was caused by
additional points for applicants with education and work experience in
New Zealand. This is currently also the case under Express Entry, which awards
points for Canadian work experience and education (Chapter 2). In Australia, the
study-to-residence pathway led the increase in transitions. The country removed a
three-year eligibility bar for international students in 1999 and allowed direct
onshore student applications in 2002. Within a year of the reforms, over 50% of
Australia’s economic permanent residence applicants held Australian qualifications
(Hawthorne, 2010[20]). In contrast to Australia, international students in Canada
need at least one year of skilled work experience before applying to the federal
economic immigration programmes in Express Entry (see Box 3.2).

Box 3.2. Transition of international students in Canada

Under Express Entry, at least one year of skilled relevant work experience is
required for pool entry. Therefore, direct transitions from student status to
permanent residency without prior skilled work experience – at least one year
within the last ten years for the Federal Skilled Workers and one year of Canadian
Experience within the last three years for the CEC – under Express Entry are not

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possible. However, some provinces have specific streams for international students,
and specific programmes such as the Atlantic Immigration Pilot have dedicated
graduate streams. In addition, Canada has a relatively generous post-graduation
search and work permit scheme for international students (Figure 3.21).

Figure 3.21. Duration of post-graduation job search periods in months, 2018

Minimum Maximum Planned

50
45
40
35
30
25
20
15
10
5
0

Source: OECD Secretariat.

International students who completed at least eight months of study in Canada, have
six months to apply for a Post-Graduation Work Permit once they obtained their
notice of graduation. At the time of application they are not required to have a
Canadian job offer and while awaiting the decision of their permit, they can stay
and work. The post-graduation work permit is an open work permit allowing former
graduates to work for any job and employer and is valid for up to three years. The
duration of the permit is linked with the duration of studies in Canada.
A survey by the Canadian Bureau for International Education showed that 60% of
all international students plan to stay permanently in Canada, an increase from 51%
who intended to do so prior to the recent reforms which valued Canadian studies
(CBIE, 2018[14]). In 2018, there were more than 46 000 initial work permits issued
to individuals under the post-graduation work permit stream, a number that has
increased five-fold since 2014. Between 2016-18 this number increased slightly
stronger than the number of initial study permits over the same period (53% versus
46%). Overall, 12% of permanent immigrants in economic classes in 2018 – almost
23 000 individuals – previously held a PGWP, up from just 5% in 2015 (IRCC,
2019[21]). An estimation of student stay rates suggests that about six in ten
international graduates stay in Canada upon graduation.37 This is a much higher
share than observed in other OECD countries, however it is not clear how many
finally transition to permanent residency (OECD, 2019[22]).
In 2018, 25% of applicants to permanent residency under EE claimed bonus points
for education in Canada (around 23 000 individuals), a strong decline from 45%
who did so in 2017 (31 000) (IRCC, 2019[23]).

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Onshore transition levels remain lower than in other settlement countries

All Settlement countries accept large numbers of permanent labour migrants
through two-step migration pathways. Such onshore transitions quickly became the
norm for skilled migrants in New Zealand, where onshore proportion of skilled
principal applicants reached over 80% in the 2000s. A similar but less pronounced
trend occurred in Australia, where over two-thirds of principal applicants
transitioned onshore in the year 2015/16. In the United States, where the bulk of
permanent immigration is through family streams labour migration accounts for
only about 5% of permanent residents permits. Among these labour immigrants, in
many years close to and over 90% were onshore transitions a share that remained
broadly unchanged over the last decade.
Data on transitions to economic classes in Canada shows that about 55% of those
principal applicants admitted in 2018 held a previous work permit. This is below
the shares observed in the other settlement countries, although the growth over time
has been more pronounced in Canada than elsewhere (Figure 3.22).

Figure 3.22. Onshore transitions to permanent residence (%), 2007-17

Canada Australia New Zealand United States

100
90
80
70
60
50
40
30
20
10
0
2007 2009 2011 2013 2015 2017
Note: All four countries include only principal applicants to economic classes and exclude spouses and
dependants. Shares in New Zealand, Australia and the United States denote onshore transitions whereas the
shares in Canada are based on number of individuals who held a previous permit (TFW Program/IMP) before
their permanent admission in Canada.
Source: OECD Secretariat calculations based on data from MBIE (annual migration trends reports), DIBP,
USDHS (Employment-based preferences) and Statistics Canada.

Immigrants with Canadian pre-admission experience have higher earnings

than their peers selected from abroad
Figure 3.23 presents the median annual income of principal labour migrants by pre-
admission permits in Canada, for the cohort admitted in 2008 by years since
landing. Trajectories for other admission years are very similar.

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Figure 3.23. Median annual income in CAD by pre-admission experience, cohort of

2008

With work and study permits With work permit(s) only

With study permit(s) only Without pre-admission permits
70000

60000

50000

40000

30000

20000

10000

0
0 years since 1 years since 2 years since 3 years since 4 years since 5 years since 6 years since 7 years since 8 years since
admission admission admission admission admission admission admission admission admission

Source: Statistics Canada. Table 43-10-0010-01 Immigrant Income by admission year and immigrant admission
category.

Two observations stand out. The first key observation is that, for the first four to
five years after landing, labour immigrants with previous work permits outperform
those without such permits. However, about eight years after landing, labour
immigrants without pre-admission experience have caught up to those with work –
but no study – experience in Canada. This is consistent with earlier findings that
immigrants with pre-immigration Canadian skilled work experience had a large
earnings advantage over immigrants who were selected from abroad 38 (Hou and
Bonikowska, 2016[19]). The authors find that only one-quarter of the earnings
advantage was attributable to the level of education, language knowledge and origin
country. Hou and Bonikowska (2016[19]) suggest that the earnings advantage might
be related to pre-immigration labour market selection. This could happen in at least
two ways. First, employers could be better placed than the objective criteria used
by the immigration authorities to judge the value of an individual’s skills in the
context of the current labour market. To some extent, the bonus points awarded to
Express Entry candidates who have a job offer can be understood as a reflection of
employers’ more astute judgment in this area. Second, the prior work history could
also provide for some selection, as unsuccessful temporary workers may be less
likely to get enough skilled work experience for transition. Interestingly, the
earnings advantage of Canadian work experience fades out over time. This is not
the case for Canadian education. Indeed, the second key observation from
Figure 3.23 is that immigrants with Canadian education have the steepest earnings
growth. However, even after ten years, they still lag somewhat behind those who
also have pre-landing work experience in addition.

Conclusion
The changes to the temporary foreign worker programmes over the past five years
have established two broad pathways for temporary labour migration. While one is

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labour-market-tested and rather tightly restricted with caps and transition plans, the
other admits a large and growing number of individuals for broader economic,
cultural and other benefits – not directly linked to labour market needs. Around
two-thirds of the latter group hold open work permits rendering a timely assessment
of the labour market impact difficult. However, Canada has made first
commitments to increase the monitoring of the latter group under the 2019 Budget
and it is important to continue along these lines.
More generally speaking, the current system encourages higher-skilled individuals
(and their employers) to divert to permanent pathways, whereas transition
possibilities to permanent residence for lower-skilled are mainly available via
regional programmes.
A key group to take into account in labour market impact analyses going forward
are international students. They are not only a strongly growing but also hardly
monitored labour force and present a key group of potential future permanent
residents.

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Notes

1
Employment and Social Development Canada (ESDC) and Quebec’s Ministère de l'Immigration,
de la Diversité et de l'Inclusion (MIDI) are implementing simplified processing requirements for
select occupations that are updated annually by the province. In recognition of the fact that the
provincial government (Emploi Québec in collaboration with MIDI) has already determined that
there is insufficient labour supply for these occupations in Quebec, employers seeking to hire TFWs
in these occupations do not have to demonstrate proof of recruitment efforts in advance of applying
to the TFW Program for foreign workers in the province.
2
Reference to these work opportunities are listed under R186 of the Immigration and Refugee
Protection Regulations (IRPR). These specific professions include athletes and coaches; aviation
accident or incident investigators; civil aviation inspectors; clergies; convention organisers; crew
members; emergency service providers; examiners and evaluators; expert witnesses or investigators;
family members of foreign representatives; foreign government officials or representatives; health
care trainees; judges, referees or similar officials; military personnel; news reporters and film and
media crew; producers or staff members working on advertisements; performing artists; and public
speakers.
3
There are cases where the open work permit can be restricted by occupation or by location. For
example, Bridging Open Work Permit applicants who have a permanent residence application under
the Provincial Nominee Program may receive an open work permit restricted by location/province.
4
In addition, the foreign worker, the transferring and receiving employers, as well as an agent of the
foreign worker’s government must all agree to the change of employment.
5
This number includes both initial permits and renewals. Depending on the programme, the duration
of a work permit can vary from a few weeks to several years.
6
This number includes only initial study permits (no extensions) and excludes permits to attend
primary and secondary schools.
7
When a study permit holder decides not to renew the study permit but obtains a work permit before
the existing study permit expires, there is a period when the permit holder holds two permits of a
different type. For reporting purposes, neither permit is omitted during the period of time when the
two permits overlap. Instead, both are reported in different tables according to the type of permits
held. IRCC data from end-2013 suggest that this applied to approximately 10% of work and study
permit holders.
8
A valid study permit with a specified condition allows full-time international students enrolled at
a designated learning institution to work on and off campus part-time during academic season and
full time during academic breaks.
9
Starting in April 2013, and in the following year ESDC introduced major changes and some
additional reforms took place in 2016 and 2017.
10
The cap only applies to employers who employ more than 10 persons. Employers in seasonal
industries hiring TFWs in seasonal positions that are no more than 180 calendar days in length are
exempt from this cap. In addition, caregiving positions in private households and in health care
facilities, on-farm primary agricultural positions, as well as certain short duration positions of 120
calendar days or less in duration (e.g. carnival or fair operators) are exempted from the cap.
Likewise, positions on a Labour Market Impact Assessment to be submitted to support a temporary
foreign worker’s permanent residence application under Express Entry are exempted from the cap.

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11
These occupations include: cashier, store shelf stockers, clerks and order fillers; food counter
attendants, kitchen helpers and related support occupations; security guards and related security
service occupations, light duty cleaners, specialised cleaners; janitors, caretakers and building
superintendents; support occupations in accommodation, travel and facilities set-up services;
construction trades helpers and labourers; and landscaping and grounds maintenance labourers.
12
As of June 2019, foreign caregivers seeking work permits are subject to new rules. Ministerial
Instructions were issued on June 18, 2019 to stop processing certain caregiver Labour Market Impact
Assessment (LMIA)-required work permit applications for outside-of-Canada applicants intending
to work in caregiving occupations under the Temporary Foreign Worker (TFW) Program.
13
On 13 December 2016, the four-year cumulative duration rule (“four-in, four-out” rule), which
banned certain migrant workers from working in Canada for four years after they had spent four
years working there, was abolished. This rule had been implemented in 2011.
14
For instance, work permits issued under the IMP in Ontario in 2007 accounted for 37% of all
83 000 permits issued in that year while in 2016, they accounted for 70% of the close to 100 000
permits issued. A similar trend – strong decline among TFW Program permits and simultaneous
strong increase of IMP work permits –holds for Alberta.
15
The TFW Program has a 10-day “priority” LMIA processing for applications other than the Global
Talent Stream. This includes: 1) highly paid occupations that offer wages within the top 10% of
wages earned by Canadians in the province-territory where the work is taking place; 2) the job offer
has a length of 120 calendar days or less and the wage is at or above the provincial/territorial median
hourly wage in the province/territory where the work will take place; 3) the LMIA is requested for
high-demand skilled trades occupations and the wage is at or above the provincial/territorial median
hourly wage in the province/territory where the work will take place; 4) LMIA applications
supporting permanent residence under any Express-Entry-eligible programmes.
16
NOC refers to Canada’s National Occupation Classification, Canada’s official job classification
system. It includes more than 30 000 occupational titles into 500 Unit Groups, organised according
to skill levels and skill types.
17
Other LMIA-required workers (outside of the Global Talent Stream) such as High Wage Stream
can also receive two-week priority processing of the employer’s LMIA application if they are NOC
0 and A.
18
In such a case, the foreign national is sent a notification letter stating their permit will be revoked
in 90 days and their temporary resident status and work authorisation continues until the date stated
in the letter.
19
For migrant workers to be eligible, they must be in Canada and either hold a valid employer-
specific work permit or be authorised to work without a work permit under implied status as a result
of ongoing renewal of their employer-specific work permit.
20
A number of exemptions to the fee exist, such as for agricultural workers and certain caregivers
in private households as listed in 315.2 of the Immigration and Refugee Protection Regulations
(IRPR).
21
Due to the exclusion of private households and some other employers, the list is not complete.
22
Reviews of the LMBP are conducted separately and distinct from measures to ensure compliance
of employers with these general requirements.
23
The LCP replaced the Foreign Domestic Movement Program, initiated in 1981. This programme
had essentially the same terms as the LCP, by providing migrant domestic workers with access to
Canadian permanent residence after they completed a twenty-four month live-in work requirement.
24
The 2014 caregiver pilots are no longer open to new applications but submitted applications are
still being processed.

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25
93% of those filing first income tax in 2006, 94% in 2016.
26
Until 2014, a specific permit for Off-Campus Work for enrolled international students existed.
Since June 2014, international students are generally allowed to work on and off campus without an
additional permit, explaining the slight decrease in IMP permits from 2014 to 2015.
27
For the Working Holiday programme, these countries include Australia, New Zealand, the United
States, as well as a number of European countries (Austria, Belgium, Croatia, Czech Republic,
Denmark, Estonia, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Netherlands,
Norway, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the
United Kingdom). In addition, Chile, Costa Rica, Hong Kong, Japan, Korea and Chinese Taipei
participate in the programme. Mobility agreements with Mexico and the Ukraine are currently under
review.
28
For applicants from the Netherlands, Korea, Sweden and the United Kingdom, the age limit at
application is 30 years.
29
All countries having more than 100 000 international tertiary students enrolled in full-degree
programmes.
30
This number includes permits issued to individuals for: CAAT, CEGEP or other post-secondary
course lasting a year or more (including pre-university and technical), Colleges (applied degree,
certificate and diploma), English/French as Second Language (ESL/FSL), English/French as Second
Language (ESL/FSL) and College, English/French as Second Language (ESL/FSL) and University,
PTC/TCST/DVS/AVS, Trade Schools, University (Bachelor's, Master's, Doctorate and others) as
well as a number of other or unspecified study permits. It excludes permits issued for primary and
secondary school attendance.
31
Only applications received electronically are eligible for SDS processing. All paper applications
are processed under the regular study permit application stream and are subject to the associated
processing times. Foreign nationals eligible for SDS processing are still subject to all other eligibility
and admissibility requirements.
32
Within this factor, in particular the public expenditure on family benefits and the tax structure that
disincentives a second earners to enter employment decrease Canada’s score. However, both of these
issues are beyond the remit of migration policy.
33
For about 15% of permits issued under the TFW Program between 2015 and 2018, the intended
destination was not available.
34
As discussed previously, the largest groups of open work permit holders are former international
students with a post-graduation work permit (PGWP), most participants of International Experience
Canada (IEC) and spouses of skilled workers and international students.
35
TFW Program holders with permits issued between 2015 and 2018. Shares are based only on
permits where this information is available. For about 14% of the TFW Program permit issued
between 2015-18 the information on intended destination and occupation is missing. These shares
are based on including for agriculture the NOC 0821, 0822, 8252, 8255, 8431, 8432 and 8611 and
for caregivers NOC 4411, 4412, 3012, 3233 and 3413.
36
These data refer to the number of admissions of persons with previous IMP or TFW permits,
divided by the number of admitted principal applicants in the economic classes.
37
This estimation is based on the number of initial post-graduation work permits issued in 2016 as
well as on the number of admitted permanent residents under the family class in 2016 who
previously held a study permit, as a share of the total number of international graduates in 2016.
38
The study used data on arrival cohorts from 1990-2006. A positive impact was found regardless
of whether the year of immigration or the year of first arrival were taken as starting point.

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Immigrants Who Were Former Skilled Temporary Foreign Workers in Canada”,
International Migration Review, p. imre.12310, http://dx.doi.org/10.1111/imre.12310.

HUMA (2016), Report of the Standing Committee on Human Resources, Skills and Social [3]
Development and the Status of Persons with Disabilities: TEMPORARY FOREIGN WORKER
PROGRAM, http://www.parl.gc.ca.

Infometrics (2016), The Economic Impact of International Education in New Zealand 2015/16, [17]
https://enz.govt.nz/assets/Uploads/The-Economic-Impact-of-International-Education-in-New-
Zealand-2015-2016.pdf.

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170  3. TEMPORARY LABOUR MIGRATION

IRCC (2019), “Admissions of Permanent Residents with Prior International Mobility Program [21]
(IMP) Work Permit Holder Status under Post-Graduate Employment by Province/Territory of
Intended Destination and Immigration Category”,
https://open.canada.ca/data/en/dataset/1b026aab-edb3-4d5d-8231-270a09ed4e82.

IRCC (2019), Evaluation of the International Experience Canada Program, [11]

http://www.canada.ca/content/dam/ircc/documents/pdf/english/evaluation/e2-2017-iec-
en.pdf.

IRCC (2019), Express Entry year-end report 2018, http://www.cic.gc.ca/publications. [23]

IRCC (2018), Report to OECD Expert group on International Migration (SOPEMI): Canada’s [8]
immigration policies, programs and trends.

Kelly, P. et al. (2011), “Profile of Live-In Caregiver Immigrants to Canada, 1993-2009”, Toronto [9]
Immigrant Employment Data Initiative (TIEDI) 18.

Nakache, D. and P. Kinoshita (2010), The Canadian Temporary Foreign Worker Program: Do [2]
Short-Term Economic Needs Prevail over Human Rights Concerns?, l’Institut de recherche
en politiques publiques, http://irpp.org/fr/research-studies/the-canadian-temporary-foreign-
worker-program/.

OECD (2019), Recruiting Immigrant Workers: Korea 2019, Recruiting Immigrant Workers, [22]
OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264307872-en.

OECD (2018), Education at a Glance 2018: OECD Indicators, OECD Publishing, Paris, [13]
https://dx.doi.org/10.1787/eag-2018-en.

OECD (2014), Recruiting Immigrant Workers: New Zealand 2014, Recruiting Immigrant [12]
Workers, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264215658-en.

OECD (forthcoming), Time to stop falling short on long-term care. [7]

Roslyn Kunin and Associates (2017), Trends in international student enrolment and economic [16]
impacts in Canada, http://www.international.gc.ca/education/report-rapport/impact-2017/sec-
5.aspx?lang=eng.

Tuccio, M. (2019), “Measuring and assessing talent attractiveness in OECD countries”, OECD [15]
Social, Employment and Migration Working Papers, No. 229, OECD Publishing, Paris,
https://dx.doi.org/10.1787/b4e677ca-en.

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 4. PROVINCIAL MIGRATION MANAGEMENT  171

Chapter 4. Provincial migration management

Co-operation between the federal and provincial/territorial (PT) governments in

migration management is a particular feature of the Canadian immigration system
and attributable to Canada’s federal governance. This chapter first briefly
describes the responsibilities of the federal and PT governments, including the
Quebec programmes, and their evolution over time. The chapter then compares the
profiles of federally and provincially selected immigrants as well as their labour
market outcomes, before analysing the inter-provincial mobility of provincially and
federally selected immigrants. A final section analyses the settlement patterns of
provincially selected immigrants within provinces and territories.

The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The
use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli
settlements in the West Bank under the terms of international law.

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A key question of labour migration management is how to attract migrants into the
areas where their skills are in demand. In particular, permanent economic migrants
tend to agglomerate more strongly than the native-born in metropolitan areas. At
the same time, the scale and structure of labour market needs differ greatly across
Canada.
For over twenty years, Canada has aimed to address these key challenges by an
increasingly shared management of economic migrant selection between the federal
and the provincial/regional governments. In 2018, roughly half of all permanent
economic immigrants were selected by provincial governments. Some of these
passed through the points-based federal selection system (Chapter 2).
Once selected, permanent labour migrants enjoy the same freedom of mobility as
Canadian-born. A key concern is thus how successful provinces and territories are
in retaining labour migrants, and the characteristics of movers compared with
stayers. Finally, given the relative independence of provinces and territories in
designing their migration programmes, the question to which degree PT-selection
and federal selection complement or substitute each other is a crucial one.

The interaction between the federal and the provincial governments in

selecting labour migrants
The Constitution Act (1867) established shared responsibility for immigration
between the federal and the provincial and territorial (PT) governments. In practice
however, prior to the 1990s, the federal government exclusively designed and
implemented immigration policy. In the last twenty years, the role of PTs in
immigration policy increased steadily and according to the rolling multi-year
immigration levels plan 2019-21, provincial governments will select over half of
the permanent economic immigrants expected to land in Canada (under the
Provincial Nominee Program and those selected by Quebec).
The selection of permanent economic immigrants in Canada is a two-tiered system.
Immigrants destined to Canadian PTs are selected either through federal
immigration programmes run by Immigration, Refugees and Citizenship Canada
(IRCC) or through provincial immigration programmes. The only exceptions are
Nunavut, which does not have a territorial immigration programme, and Quebec.
The Quebec provincial government exclusively selects its economic immigrants,
and these cannot apply via federal immigration programmes. In contrast to this
shared management of permanent immigration, the federal government alone
selects the majority of temporary labour immigrants. The regional implications of
temporary labour immigration are discussed in Chapter 3.

Selecting Economic Immigrants: shared competences between federal and

provincial governments
Federal and provincial programmes to select economic immigrants
Canada selects permanent labour immigrants through federal and provincial
programmes. In the 2019-21 Immigration levels plan, the target number of PT-

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 4. PROVINCIAL MIGRATION MANAGEMENT  173

selected permanent economic immigrants in 2020 (labour immigrants and spouses

and dependants) is over 100 000 individuals, which is slightly over half of all
permanent economic immigrants planned for that year. Around two-thirds of these
PT selected immigrants, a target number of 67 800 for 2020, are provincial
nominees (PN), the remaining third are selected under Quebec’s programmes
(IRCC, 2018[1]).
Figure 4.1. Federally and provincially selected labour immigrants, 2007-17

FE (-PNP) PNP Quebec

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: IRCC, Permanent Residents, July 31, 2018 Data. Data request tracking number: RE-
18-0424.
Figure 4.1 presents the number of labour immigrants selected through the PNP,
Quebec’s programmes and through the federal programmes over time. In 2007, PAs
accepted through the PNP represented less than 12% of all permanent labour
immigrants, whereas in 2017, this share had more than doubled to 29%. Over the
same period, the number of immigrants selected by Quebec remained relatively
stable. The share of labour immigrants selected by Quebec represented 21% of all
labour immigrants in 2007 and 18% in 2017.
Between 1996 and 2009, all provinces except Nunavut and Quebec negotiated
bilateral agreements with the federal government in order to increase their role in
selecting permanent labour immigrants. These programmes are referred to as “the
Provincial Nominee Program (PNP)”, but the PNP is in fact not one programme,
but the collection of all programmes or “streams” from bilateral agreements
between the federal government and the PTs. The PNP has been successful in
distributing permanent labour immigrants outside of the larger provinces relative to
federal programmes. In 2017, 34% of economic immigrants were destined outside
Ontario, British Columbia and Quebec, compared to just 10% in 1997 (IRCC,
2018[2]). In fact, in several provinces over 80% of newly-admitted permanent labour
migrants are PNs (Table 4.1).

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Table 4.1. Provincial Nominees, agreements and PA admissions by province in 2017

First PNP Current Admissions % of total labour
Agreement Agreement 2017 immigration
Manitoba 1996 2003 3 900 92.2
Saskatchewan 1998 2005 4 095 87.5
British Columbia 1998 2015 4 535 35.6
New Brunswick* 1999 2017 945 85.1
Newfoundland and 1999 2016 225 59.2
Labrador*
Prince Edward Island* 2001 2008 850 91.9
Yukon 2001 2008 85 85
Alberta 2002 2007 3 475 32.4
Nova Scotia* 2002 2007 1 245 80.0
Ontario 2007 2017 4 090 13.7
Northwest Territories 2009 2013 60 63.2

Note: *Provinces take part in Atlantic Immigration Pilot Program, which started in 2017. No
agreements are in place between the federal government and the Nunavut territory. Admissions
includes only labour immigrants (principal applicants).
Source: IRCC, Permanent Residents, July 31, 2018 Data (RE-18-0424).

Canada initially designed the PNP as a complement to federal programmes, to allow

PTs to select individuals given different provincial economic contexts and
priorities, including for admission of those who would not have been selected under
federal (high-skilled) programmes. This distinction has become less and less
evident in recent years, with the growth in CEC and the establishment of the mid-
skilled FST attracting similar profiles as the PNP (IRCC, 2017[3]). In parallel, PNPs
are increasingly targeting wider ranges of skills than in the past, including high-
skilled professionals and former international students.
The PTs can design their immigration programmes and choose the selection criteria
as long as the criteria are consistent with the Immigration and Refugee Protection
Act (IRPA), the Immigration and Refugee Protection Regulations (IRPR) and
bilateral agreements. Some operate their own points based systems. There are
currently more than 60 streams of the PNP with large variation across the different
PTs. For instance, Ontario has a specific programme for trade occupations whereas
Saskatchewan has a programme for long-haul truck drivers. PTs assess immigrants’
applications and issue a nomination certificate to successful candidates. They are
also responsible for monitoring and evaluating their programmes.
The role of the federal government in the PNP is to grant the permanent residence
status to the provincial nominees (PN). The PNs must pass an admissibility
screening (medical, criminality and security) done by IRCC. Nominees must show
that they intend to economically establish and reside in the province of nomination.
Successful nominees receive a visa which allows them to land in Canada. The
approval rates for PNP are well above 90%.
For the first years of the PNPs operation, the federal government played practically
no role in the selection of PNs. In 2009, the federal government imposed annual
limits for PNP principal applicants for each province. The limits are determined by

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 4. PROVINCIAL MIGRATION MANAGEMENT  175

a variety of considerations, including labour market information by

provinces/territories to support the size of their PNP allocations, and informed by
the historical evolution of the programmes and provincial/territorial government
direction for the PNP of each respective province.
In 2012, the predecessor of today’s IRCC and provinces agreed to a minimum
language standard for lower-skilled (NOC C and D) PNP applicants. PTs were also
asked to more clearly gear their programmes towards economic immigrants, and
leave family migration to the federal family programmes. Indeed, especially in the
early stages, although the PNs are economic immigrants, some streams attributed
substantial weight to family connections as these increase the likelihood that PNs
remain in the province.
Since the introduction of Express Entry in 2015, PTs that operate a PNP can recruit
candidates from the EE pool. Nominated candidates in EE receive a high number
of additional points (600 of the maximum 1200), ensuring their timely selection.
These “enhanced nominations” via Express Entry complement the “base
allocations” which PTs are able to use as they see fit under their PNP criteria and
procedures. The difference is that PNs of “enhanced nominations” have to be
eligible to the EE-pool, hence fulfill the requirements of one of the federal high-
skilled programmes regarding educational attainment, language knowledge and
work experience.
As part of the PN agreements, the federal government has committed to priority
processing of PN within the economic class of applications for permanent
residence. In 2011, IRCC implemented a service standard for all base applications
under the PNP, to process 80% of base applications under the PNP within
11 months. The latest IRCC evaluation of the PNP points towards difficulties in
meeting this objective. In 2015, it took about 15 months to finalise 80% of
applications (IRCC, 2017[3]). This period has grown further since; it took IRCC
15 months in 2016 and 16 months in 2017 to process 80% of base allocations. While
Canada was able to meet the processing standard of enhanced allocations, with 80%
processed in less than six months, processing time for these 80% of applications
also increased from four months in 2015, to five in 2016 and six in 2017. As
application intake is growing faster than PNP levels growth, and processing times
increase, the inventory of PNP applications under base allocations is growing. The
latest PNP evaluation (IRCC, 2017[3]) notes that the prioritisation of EE candidates
might be one of the causes of this problem.

Quebec programmes
The Canada-Quebec Accord signed in 1991 allows Quebec to exclusively select its
economic immigrants. Immigrants destined to Quebec cannot apply to the federal
programmes but must apply through the Quebec programmes. Consequently,
Quebec is the only province in which two distinct selections of economic
immigrants (by the PT and by the federal government) do not coexist. Quebec has
five different programmes to select economic migrants. Two programmes target
skilled workers: the Programme régulier des travailleurs qualifiés (PRTQ) and the

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Programme de l’expérience québécoise (PEQ). The three other programmes target

investors, entrepreneurs and self-employed persons (MIDI, 2019[4]).
The Quebec programmes are more similar to the federal programmes than to the
PNPs. In fact, the Quebec programmes were created in line with the streams of the
federal programmes. Nevertheless, the Quebec government exclusively determines
the selection criteria and operates its own point based selection grid. Since
September 2018, Quebec also operates its own Expression of Interest system
(ARRIMA), which caters the Programme régulier des travailleurs qualifiés
(Box 4.1).
The Quebec government sets the levels of immigration, which the federal
government takes into account when making the levels plan. The targeted intake of
economic immigrants selected by Quebec for 2019 is between 21 700 and 24 300.1
As for the PNP, the Quebec programmes target mainly economic immigrants. With
respect to family reunification, the federal government administers the programme
and Quebec manages the sponsorship commitments. In the area of humanitarian
immigration, Canada is responsible for determining – both in Canada and abroad –
whether a person is a refugee. Each year, under the Canada-Quebec Accord, Quebec
approves with the Government of Canada on the number of refugees who, once
selected, will be admitted into Quebec as government-assisted refugees.
In any case, the federal government has the last word in the admission of
immigrants as all immigrants destined to Quebec must pass the admissibility
screening (medical, criminality and security) done by IRCC.

Box 4.1. Quebec’s Expression of Interest system

Since September 2018, Quebec runs an Expression of Interest system to select

applicants for its Programme régulier des travailleurs qualifiés (PRTQ) – one of
the province’s largest permanent immigration programmes for economic migrants
which is similar to the Federal Skilled Worker Programme. The introduction of the
EoI-system in Quebec intended primarily to better align intake of permanent
economic immigrants with the needs of the local economy and labour market,
decrease the processing time and improve their integration outcomes.
Interested candidates for the PRTQ are required to file an electronic profile through
the portal ARRIMA. EoI candidates above the age of 18 can enter the pool if they
meet all entry requirements. The candidate ranking criteria is based on human
capital and skill transferability characteristics.
Invitation is based on pool ranking. Quebec may decide to prioritise candidates with
certain characteristics, notably those with a valid employment offer or whose
profiles meet labour market needs. Pool profiles can be updated and generally
expire after one year. Selected immigrants subsequently obtain a Quebec Selection
Certificate (CSQ) and are admitted to enter the province, provided they are eligible
according to federal rules.

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 4. PROVINCIAL MIGRATION MANAGEMENT  177

Evolution and relative weight of PNP by province

Figure 4.2 presents the trends by province. The heterogeneity across provinces is
striking. In Manitoba, Saskatchewan, and the Atlantic Provinces, the number of
labour immigrants nominated by the provinces has increased sharply over the
decade 2007-17, and PNPs now constitute the bulk of economic immigrants. In
British Columbia and Alberta, the share of PNs has also increased strongly over the
period, although most labour immigrants are still federally selected. In Ontario, PNs
make up a smaller proportion of labour immigrants due to the large number of
federally selected immigrants destined to the province.
These figures show only PAs, who are the labour immigrants selected according to
the criteria of each programme. Spouses and dependents (SD) of these immigrants
are also accepted as permanent residents into Canada. In most PTs, principal labour
applicants represent around 40% of economic immigrants while their spouses and
dependants account for the remaining 60% of economic admissions over the 2008
to 2017 period. In this respect, there is little difference between federal and
provincial programmes. However, in Ontario and British Columbia, principal
applicants under the PNP seem to bring relatively fewer SDs. PNP PAs to these two
provinces outnumber their spouses and dependents and account for 53% of
economic immigrants admitted. This is in contrast to those landing under federal
economic programmes, where the 40:60 ratio observed elsewhere remains.

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178  4. PROVINCIAL MIGRATION MANAGEMENT

Figure 4.2. Evolution of federally and provincially selected labour immigrants by

province, 2007-17

PNP Federal
Atlantic Manitoba
3500 6000
3000 5000
2500
4000
2000
3000
1500
2000
1000
500 1000

0 0

BC Saskatchewan
12000 4500
4000
10000
3500
8000 3000
2500
6000
2000
4000 1500
1000
2000
500
0 0

Ontario Alberta
30000 12000

25000 10000

20000 8000

15000 6000

10000 4000

5000 2000

0 0

Source: IRCC, Permanent Residents, July 31, 2018 Data. Data request tracking number: RE-
18-0424.

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Federal versus provincial programmes: a comparison between Canada

and Australia
Canada as a settlement country is often compared to the United States and Australia.
Despite all three countries being federal countries, the roles of the federal and
regional governments in immigration policy are different. In the United States,
immigration policy is the sole responsibility of the federal government; whereas in
Canada and Australia the regional governments play a role in selecting immigrants.
The interaction between the provincial and federal governments in immigration
policy in Canada is nevertheless quite different from the one in Australia.
Australia first introduced regional selection of immigrants in 1996, the same year
that Manitoba signed the agreement with the federal government, which led to the
first PNP. The Australian State Specific and Regional Migration (SSRM) initiatives
are diverse and have similar objectives as the PNP. They are designed to allow
regions to "address skill shortages that may exist in their jurisdiction; attract
overseas business people to establish new or joint ventures in their regions; [and to]
encourage a more balanced settlement of Australia's skilled migrant intake"
(Australian Government - Department of Home Affairs, 2019[5]).
In Australia, state and territory governments can also nominate intending migrants
under the state/territory nomination (STN) scheme for permanent (190) or
temporary (489) visas. STN visas are points-tested and applicants get additional
five points for a nomination under the permanent and ten for a nomination under
the temporary visa. Applications are made via the Expression of Interest system
(OECD, 2018[6]). As mentioned in Chapter 2, in contrast to Canada’s Express Entry,
the Australian Expression of Interest system (SkillSelect) operates with occupation
lists and caps. It first allocates available places to Skilled Independent visas
(subclass 189) and the remaining to Skilled Regional (Provisional) visas (subclass
489). If all places are taken up by subclass 189 visas, then there will be no
invitations issued for subclass 489 visas in these occupations. In contrast, in
Canada, the Expression of Interest System that manages a share of provincial
nominees (Chapter 2), ensures the timely selection of PT nominated applicants, due
to a relatively large number (half of all available) points.
Furthermore, Australia has an employer-sponsored category (The Regional
Sponsored Migration Scheme, subclass 187) available to employers in regional
areas to sponsor workers for permanent residence to fill skilled vacancies in their
businesses. The RSMS encourages migration to areas outside the major
metropolitan centres and most populated regions (Brisbane, Gold Coast, Newcastle,
Sydney, Wollongong and Melbourne).2 The demand-driven programme
complements the state- and territory-nominated (STN) streams for meeting regional
and local skill needs. Employers can identify workers for nominations through their
own channels. Until April 2018, employers had access to SkillSelect3 and could
choose migrants who had expressed an interest in being sponsored by an employer
on a permanent or temporary basis. Once nominated by an employer, applicants do
not need to continue under SkillSelect but receive an invitation to apply for a visa.

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The RSMS category is thus not points tested, and applicants may be overseas or
already in Australia on a temporary visa. Canada also runs a regional employer-
driven programme outside of EE, but only for the Atlantic Provinces (Box 4.2).
A key distinction between the two systems is that in Australia, state/territory-
nominated permanent immigrants must reside and work in the sponsoring region
for at least two years after landing. In Canada, all provincial nominees and Quebec-
selected immigrants enjoy free mobility rights as permanent immigrants as soon as
they land.
Australia also has a four-year temporary visa (subclass 489) in which immigrants
are first temporary workers and then apply for permanent residency when already
living in the country. The subclass requires visa holders to live and seek work in a
regional or low-growth metropolitan area if they wish to be considered for a
pathway to permanent residency.
Furthermore, some Australian regions do not accept applicants under the regional
migration streams to their region if they are currently residing in other regions of
the country. This has been introduced to counter the risk of these persons returning
to their original state/territory of residence after receiving a permanent visa
elsewhere. Such provisions do not exist in Canada, however.

Economic immigrants selected by federal and by provincial

governments: A comparison
This section compares the characteristics and outcomes of immigrants selected by
the federal and the provincial governments. For education, occupation and income,
it uses data from the Longitudinal Immigration Database (IMDB), which pools
immigrants who first filed taxes in Canada from 2005-15. For other indicators, it
uses data provided by IRCC from 2007 to mid-2018. The chapter considers labour
immigrants (principal applicants) of the PNP and all federal economic programmes.

A profile of federal and provincial economic immigrants

Apart from the introduction of minimum language criteria and a stronger focus on
labour-market links since 2012, the selection criteria of the PNP differ widely
across PTs, as do the profiles of PNs across PTs. In addition, the profiles of federally
selected immigrants may also differ across PTs, as different PTs attract different
types of immigrants – even when submitted under the same selection grid. This
section compares socio-demographic characteristics of provincial nominees with
those of economic immigrants federally selected who choose to live in the province.
This comparison gives an overview of how the federal and provincial programmes
interact in terms of selecting immigrants with similar or different characteristics.
Labour immigrants are more likely to be men, in both federal and provincial
programmes. However, a larger share of PN-selected labour immigrants are men
than among federally selected PAs. In fact, in Saskatchewan, Alberta, and British
Columbia, the share of men among provincial PAs is 14 to 18 percentage points
higher than among federal PAs (Figure 4.3).

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 4. PROVINCIAL MIGRATION MANAGEMENT  181

Figure 4.3. Share of women among PNs and non-PNP selected labour immigrants,
2008-18

PNP non-PNP

60

50

40

30

20

10

0
Atlantic Ontario Manitoba Saskatchewan Alberta British Columbia Quebec
Provinces
Source: IRCC, Permanent Residents, July 31, 2018 Data. Data request tracking number: RE-
18-0424.

Immigrants who arrive at an early age in the host country have been shown to
progress faster in the labour market, and to contribute more to the host country
economy. Consequently, age is taken into account in several point systems when
selecting economic immigrants. Economic immigrants in Canada arrive at a
relatively young age, especially since the introduction of EE which favoured
younger applicants (see Chapter 2). In 2017, about half of admissions under EE
were younger than 30 years of age. With the exception of Ontario, PNs tend to be
above that age-range, especially in the Atlantic Provinces.
Speaking the host country language is another important factor for successful labour
market integration. As of 2019, all federal and provincial immigration programmes
require a minimum level of English or French. The level depends on the
programme. A large majority of the federal and provincial immigrants speak
English. With the exception of Quebec, over 80% speak English irrespective of
their programme.
The top source countries of federally and provincially selected immigrants destined
to the same province are practically the same. Some countries belong to the top five
source countries for most provinces: the Philippines, China, the UK, and India. Only
the source countries of immigrants to Quebec are different, given the language
requirements. Three among the top five source countries are francophone countries.
The main difference between the PNP and the federal programmes is the fact that
the PNP allows PTs to select immigrants with different skills than those required
by the federal programmes. The difference in skills between federally and
provincially selected immigrants, as measured by the educational attainment and by
the intended occupation of immigrants, differs across provinces.
Most federally selected immigrants have a university degree (Table 4.2). In fact,
among federally selected PAs during the period 2005-15, more than 75% have a

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182  4. PROVINCIAL MIGRATION MANAGEMENT

university degree, except in British Columbia where the percentage is 71%. PNs
are less likely to have a university degree. The percentage of PNs with a university
degree is 25 to 40 percentage points lower than that of federal immigrants who live
in the same PT. The smallest difference is in BC, due to the fact that federal-select
immigrants in this province are less likely than elsewhere to have a university
degree. This difference in university education does not mean that most PNs only
have secondary education. In fact, over 25% of PNs in all provinces have a non-
university tertiary education. This is also the case in Quebec, where 24% of PAs
have a non-university tertiary degree, and a relatively lower share has a university
degree (69%).

Table 4.2. Education level of provincially and federally selected labour immigrants
(PAs)

Principal applicants Spouses and dependants

Federal + Federal and Federal + Federal and
QC QC skilled QC QC skilled
PN labour worker
PN labour worker
immig. programmes immig. programmes
Atlantic % univ education 51% 81% 79% 27% 50% 50%
Provinces
% tertiary non uni 34% 14% 8% 33% 26% 17%
education
85% 95% 87% 60% 75% 67%
Quebec % univ education 69% 70% 45% 47%
% tertiary non uni 24% 23% 33% 33%
education
93% 94% 78% 80%
Ontario % univ education 40% 79% 84% 23% 52% 58%
% tertiary non uni 29% 16% 12% 28% 23% 21%
education
69% 96% 97% 51% 75% 79%
Manitoba % univ education 51% 81% 85% 30% 53% 56%
% tertiary non uni 33% 15% 9% 30% 24% 19%
education
84% 97% 94% 60% 77% 75%
Saskatchewan % univ education 48% 84% 88% 31% 61% 60%
% tertiary non uni 37% 15% 5% 30% 22% 19%
education
86% 98% 93% 61% 82% 79%
Alberta % univ education 51% 78% 82% 38% 52% 56%
% tertiary non uni 32% 18% 14% 28% 25% 23%
education
83% 96% 96% 66% 76% 79%
British % univ education 58% 71% 84% 39% 42% 55%
Columbia
% tertiary non uni 31% 21% 13% 31% 29% 24%
education
89% 92% 97% 69% 71% 80%

Note: “Skilled workers programmes” refers to the federal programmes FSWP and CEC, as well as
the Quebec programmes PRTQ and PEQ.
Source: IMDB 2005-15.

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Only PAs are selected through the immigration programmes. However, SDs often
participate in the labour market. The differences in university graduation of SDs
mimic those of PAs rather closely. SDs of PNs are 24 to 30 percentage points less
likely to have a university degree than SDs of federally selected PAs, except in
Alberta and British Columbia where the difference is smaller. The share of
immigrants with a tertiary non-university degree is more similar among federal and
provincial SDs than among PAs. In Quebec, the share of SDs with a tertiary non-
university degree is again the highest, with 33%.
Federally and provincially selected migrants also intend to work in different
occupations (Table 4.3). Over the period 2005-15, over 30% of FSWs in all
provinces apart from Manitoba, intended to work in Natural and Applied Sciences,
and between 17 to 29% in occupations in Education, law and social, community
and government services. In contrast, few PNs intended to work in these
occupations. Over one in five PNs in Ontario, Saskatchewan, Alberta and Manitoba
intended to work in sales and services occupations, and between 17 and 25% of PNs
intended to work in trades, transport and equipment operators and related
occupations. While a very small share of FSW intends to work in occupations in
manufacturing and utilities, the share among PNs is much higher in all provinces.
Perhaps surprisingly given the lower levels of formal qualifications, a relatively
large share of PN immigrants to the Atlantic Provinces and Ontario intend to work
in management occupations. Immigrants to Quebec are similar to federally selected
immigrants in terms of their distribution of skill types, except for a larger share of
immigrants intending to work in occupations in manufacturing and utilities.

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Table 4.3. Skill type of intended occupations of provincially and federally selected
labour immigrants

Atlantic
Ontario Manitoba Saskatchewan Alberta BC Quebec
Provinces
FSWP PNP FSWP PNP FSWP PNP FSWP PNP FSWP PNP FSWP PNP PRTQ
0. Management 12% 46% 15% 26% 10% 7% 8% 5% 11% 5% 17% 17% 5%
occupations
1. Business, finance 8% 3% 14% 7% 10% 18% 7% 8% 12% 6% 14% 6% 17%
and administration
occupations
2. Natural and 34% 11% 33% 11% 23% 13% 31% 9% 34% 15% 28% 14% 28%
applied sciences
and related
occupations
3. Health 13% 6% 10% 4% 23% 4% 15% 11% 10% 7% 9% 11% 7%
occupations
4. Occupations in 29% 3% 17% 3% 28% 5% 37% 6% 19% 4% 18% 5% 15%
education, law and
social, community
and government
services
5. Occupations in 0% 1% 3% 0% 0% 1% 0% 1% 2% 1% 4% 2% 4%
art, culture,
recreation and sport
6. Sales and service 2% 6% 4% 7% 1% 9% 2% 18% 6% 19% 5% 20% 8%
occupations
7. Trades, transport 2% 8% 3% 27% 4% 21% 1% 32% 4% 20% 3% 12% 4%
and equipment
operators and
related occupations
8. Natural 0% 0% 0% 1% 0% 2% 0% 5% 0% 2% 0% 1% 0%
resources,
agriculture and
related production
occupations
9. Occupations in 1% 17% 1% 14% 1% 18% 0% 6% 1% 21% 1% 13% 11%
manufacturing and
utilities

Source: IMDB 2005-15.

Intended occupations in most provinces reflect the differences in education levels.

According to the NOC classification, occupations classified as skill level A require
a university degree; those classified as skill level B require college education or
apprenticeship training; those classified as skill level C require secondary school
and/or occupation-specific training; and those classified as skill level D require only
on-the-job training. Figure 4.4 provides an overview of intended occupation by
NOC type, for those applicants where this data is available, excluding individuals
intending to work in management (NOC 0). For all provinces, the share of federally
selected immigrants intending to work in an occupation of skill level A or B is close
to 90% and higher. The skill level of intended occupations of PNs is as expected
more diverse, and varies across provinces. The share of PNs who intend to work in
occupations of skill level C and D is 30% and above in Manitoba, Saskatchewan,

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and Alberta, but much lower in the other provinces. The share of PNs intending to
work in occupations of skill level D is highest in Alberta and Saskatchewan, at close
to 17%.

Figure 4.4. Skill level of provincial and federal labour immigrants by province of
intended residence, 2008-18

A - Professionals B - Skilled and Technical C - Intermediate and Clerical D - Elemental and Labourers

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Prov Fed Prov Fed Prov Fed Prov Fed Prov Fed Prov Fed
Atlantic Ontario Manitoba Saskatchewan Alberta BC Quebec

Note: Data for 2018 until July. The graph excludes individuals intending to work in management
positions (NOC 0) and individuals for which this data is not available.
Source: IRCC, Permanent Residents, July 31, 2018 Data. Data request tracking number: RE-
18-0424.

Considering the principal applicants to the FSW programme and Quebec’s PRTQ
between 2008 and July 2018, the share of immigrants in Quebec intending to work
in NOC B occupations is at 27% very similar to the 26% of federally selected in the
other provinces. However, PRTQ immigrants to Quebec are more likely to intend
work in intermediate and clerical jobs NOC C (10%) than federally selected (5%)
and somewhat less likely to intend to work as professionals (63% and 69%).4
In summary, federally and provincially selected immigrants tend to have different
characteristics and (intend to) work in different occupations. This suggests that the
programmes complement, rather than substitute each other – in spite of some
programme convergence.

Labour market outcomes of federal and provincial economic immigrants

One question that arises is whether federally or provincially selected immigrants
integrate better in the Canadian labour market. As a first measure of integration in
the labour market, Table 4.4 presents the share of immigrants who declare
employment income by province of landing (and nomination for PNs) one year,
three years and five after landing in Canada. A first observation is that there are
large differences in the shares of immigrants who declare employment income
across provinces, both for federally and provincially selected immigrants.

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Table 4.4. Share of immigrants reporting employment earnings by PT of landing

and immigration programme

Federally and
PNP
QC-selected economic
years since landing years since landing
1 3 5 1 3 5
Principal applicant
Atlantic Provinces 73% 66% 61% 78% 76% 75%
Ontario 83% 76% 69% 77% 77% 77%
Manitoba 90% 89% 88% 85% 85% 85%
Saskatchewan 92% 90% 90% 88% 85% 84%
Alberta 96% 94% 93% 90% 88% 88%
British Columbia 90% 86% 82% 75% 73% 71%
Territories 97% 91% 95% 95% 91% 85%
Quebec 73% 78% 80%
Total 89% 86% 84% 77% 78% 78%
Spouses and dependants
Atlantic Provinces 51% 52% 53% 52% 57% 61%
Ontario 52% 53% 56% 57% 61% 64%
Manitoba 76% 79% 81% 71% 76% 76%
Saskatchewan 80% 81% 85% 74% 78% 75%
Alberta 79% 82% 82% 77% 78% 79%
British Columbia 67% 68% 67% 56% 58% 58%
Territories 95% 94% 92% 91% 80% 93%
Quebec 52% 61% 66%
Total 72% 73% 74% 58% 62% 65%

Note: Data only considers employment earnings, 2005-15.

Source: Longitudinal Immigrant Database (IMDB) 2015. Data request tracking number: RE-
18-0424.

Immigrants destined to the Prairie Provinces (Alberta, Saskatchewan and

Manitoba) are the most likely to declare income from employment. In these
provinces, both provincially and federally selected labour immigrants have
employment rates higher than 85% in the first year, although PNs are slightly more
likely than federal immigrants to declare income from employment. Federal
immigrants destined to the largest receiving provinces, Ontario and BC, as well as
immigrants destined to Quebec, are less likely than in the Prairie Provinces to
declare income from employment one year after arrival. Nevertheless still
approximately three quarters of economic PAs do so. The employment rate of PNs
in British Columbia and Ontario is higher than that of federal immigrants.
Federal immigrants destined to the Atlantic Provinces have employment rates
comparable to those of Ontario, British Columbia and Quebec. These are the only
provinces where PNs have lower employment rates than federal immigrants.
However, small numbers of immigrants arrive in these provinces.
Not surprisingly, SDs have lower employment rates than PAs across all provinces
and programmes. The patterns found across provinces for PAs are reflected in those
of SDs. In Alberta, Manitoba and Saskatchewan, more than 70% of SDs, both

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federal and provincial, declare employment income. SDs in Ontario, the Atlantic
Provinces, Quebec and British Columbia have much lower likelihood of having
employment income.
One of the stated concerns about the PNP has been that the programmes may be
focused on the short term labour market needs of the PTs, and may not meet long-
term objectives.5 The worry is thus that in the longer run, the labour market
integration of PNs may not be as successful as that of federal immigrants. Looking
at the share of immigrants arriving between 2005-15 reporting employment
earnings three and five years after landing suggests that among PNP principal
applicants’ shares of immigrants who report employment earnings decline while
they remain stable or increase among federally and Quebec selected immigrants.
Nevertheless, five years after arrival shares of PNP immigrants declaring
employment income are still higher than among federally selected immigrants –
with the exception of the Atlantic Provinces and Ontario. In the short-to medium-
run, there is no evidence of worse outcomes of PNs.
This is consistent with research on earnings, which found that PNP PAs have high
earnings in the years after arrival but their income curve is flatter compared to other
admission classes such as the FSW and CEC (Pandey and Townsend, 2013[7];
Warman, Webb and Worswick, 2019[8]). This is most likely due to the fact that
many have pre-arranged employment or other existing networks prior to landing
but overall lower human capital endowment than federal high-skilled immigrants.6
Considering employment rates is a partial measure of labour market performance.
An important issue affecting immigrants in the host country labour market is the
mismatch between the immigrants’ skills and the skills required for the jobs held
by the immigrants. In order to analyse whether this is an issue for provincial relative
to federal immigrants, one would need information on the occupations held by
immigrants over time by immigration programme. The IMDB is based on tax
records matched to landing cards. The data contains information on the intended
occupation of the immigrant upon landing, but does not contain information on the
actual occupation held over time. Other sources with rich information on the
occupation of workers, such as labour force surveys, do not contain information on
the immigration programme.
There is nevertheless some evidence on this issue given by a survey from IRCC in
the context of the 2017 PNP Evaluation. In this survey, 5 818 PNs who landed in
Canada between 2010-15 were interviewed Most PNs had their first employment
in Canada in a high skilled occupation and 77% reported currently working in an
occupation that is commensurate with their intended skill level or higher. This is a
higher share than the 70% reported in the previous PNP evaluation. Skill mismatch
seems to be somewhat a larger problem in Manitoba, where over 40% of survey
respondents held a job at the time of the survey that was not commensurate with the
skill level of their intended occupation (IRCC, 2017[3]). Further research should
compare the skill mismatch of PNs to the skill mismatch of federally selected
immigrants in the same provinces.

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Onshore transitions and the question of structural vs. temporary labour

needs
Regarding federal selection, several recent changes in the permanent immigration
management discussed in Chapter 2 increased two-step (temporary to permanent)
migration. Against this backdrop, the role of employers in selecting temporary
immigrants, and hence the possibility to make a first selection of permanent
residents who immigrate in a two-step migration process, has increased over the
past decade.
In recent years, about two-thirds of the PNs held a temporary work or study permit
prior to being nominated by a PT. Indeed, nine out of 11 territories have PNP
streams that require work experience in the PT of nomination.
Likewise, in 2016, 40% of individuals with previous work permits transitioning into
permanent residence under an economic programme were part of the PNP (IRCC,
2017[9]); i.e. onshore transitions through employment pass disproportionately often
through the PNP. One issue that arises when the role of employers in immigrant
selection increases is whether the immigrants selected are addressing real long-term
labour market needs. The overwhelming majority of individuals transitioning into
a PNP were previously part of the International Mobility Program (94%), which
does not require a labour market test. In contrast to those transitioning to high-
skilled federal immigration classes, it is not clear to what extent those transitioning
to the PNP respond to long-term labour shortages especially given the often lower
skill levels (see below). In addition, it is not clear to what extent PNP might be a
response of PTs to attract labour to their region – outside of employer driven
selection – for de facto temporary needs, especially in a context of limited
possibilities for managed temporary labour migration and the lack of a regional
element therein (see also Chapter 3).

Inter-provincial mobility of labour immigrants

One of the rationales to establish the PNP and its expansion was to attract
immigrants to regions in Canada with few federal immigrants in order to distribute
the gains from economic immigration. In fact, a measure of success of the
programme has been the fact that it attracted immigrants to PTs with little prior
immigration. Although PTs select their immigrants, as mentioned these are free to
move and live in any PTs as soon as they land. PNs are permanent residents and as
such enjoy free mobility in Canada. Consequently, a second measure of success of
the PNP is the retention rates of immigrants, that is the share of immigrants destined
to a PT who remain living in the PT. This section thus analyses the inter-provincial
mobility patterns of labour immigrants and the issues raised by their mobility.

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Mobility of provincially selected labour immigrants

Figure 4.5. Mobility matrix for principal applicants under the PNP by province of
residence and province of destination
One year after landing, 2005-15 cohort

Province of Destination
Atlantic Ontario Manitoba British
Saskatchewan Alberta
Provinces Columbia

Atlantic
Provinces
Province of Residence

Ontario

Manitoba

Saskatchewan
Alberta
British
Columbia

Note: Numbers below 50 are excluded. Diagonal indicates migrants still living in their original
province.
Source: Longitudinal Immigrant Database (IMDB) 2015. Data request tracking number: RE-
18-0424.

Figure 4.5 depicts a mobility matrix of PNP PAs of the 2005-15 cohorts one year
after landing in Canada. The diagonal shows that the vast majority of immigrants
live in the province of nomination one year after landing. Some provinces, such as
Ontario, Alberta and British Columbia, received PNs destined to other provinces.
Other provinces, such as the Atlantic Provinces, Manitoba and Saskatchewan lose
PNs to other provinces. In absolute numbers over the ten immigration cohorts
considered, Manitoba and Saskatchewan lose a similar number of immigrants,
2 900 and 2 500 respectively, while the Atlantic Provinces over the same period
lost over 3 800 PNs – especially those selected to Prince Edward Island. In fact,
proportionally to the intake of PNs of each province, 36% of the PNs destined to
the Atlantic Provinces live in other provinces one year after landing; while this is
the case for only 5% to 15% of immigrants destined to other provinces, and for 18%
of those landing in the territories.
Quebec is excluded from the figure given that there is no PNP in Quebec.
Nevertheless, the province receives some small numbers of PNs destined to other
provinces. In the ten years considered, approximately 290 PAs of the PNP moved
to Quebec from other provinces, out of which 120 initially were destined to the
Atlantic Provinces.

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Mobility of federally and Quebec-selected labour immigrants

Figure 4.6. Mobility matrix for labour migrants selected by the federal government
and by Quebec, by province of residence and province of destination
One year after landing, 2005-15 cohort

Province of Destination
Atlantic British
Ontario Manitoba Saskatchewan Alberta Quebec
Provinces Columbia
Atlantic
Provinces
Province of Residence

Ontario

Manitoba
Saskatchewan

Alberta
British
Columbia
Quebec

Note: Numbers below 100 are excluded. Diagonal indicates migrants still living in their original
province.
Source: Longitudinal Immigrant Database (IMDB) 2015. Data request tracking number: RE-
18-0424.

Figure 4.6 presents a mobility matrix for immigrants selected by the federal
government and by Quebec prior to the introduction of EE.7 The four provinces that
receive the largest numbers of immigrants (Ontario, Quebec, British Columbia and
Alberta) are also the provinces that receive more immigrants who were destined to
other provinces. Ontario, Alberta and British Columbia are the provinces receiving
the largest number of federal immigrants destined to other provinces during this
period. However, the number of federally selected immigrants moving to Alberta
from other provinces is over a quarter the number of all federally selected
immigrants landing in Alberta, whereas immigrants moving to Ontario and British
Columbia represent only 8% and 11% of all the federally selected immigrants
landing in these provinces.
The interprovincial mobility of immigrants (provincial- and federal-selected) are to
some extent similar to general interprovincial population movement patterns in
Canada (Saunders, 2018[10]). The largest interprovincial population flows between
2005-15 involve exchanges between Ontario (both in and outflows), Alberta and
British Columbia (inflows) and Quebec (outflows). The Atlantic Provinces had
interprovincial population outward movements, which offset the population gains
from international migration, a pattern also observable for Manitoba. The only two
provinces with a large positive interprovincial balance of population movements
are Alberta and British Columbia. Ostrovsky, Hou and Picot (2011[11]) show that
immigrants’ interprovincial migration response to the economic boom in Alberta

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was larger than among natives. While overall population movements seem to
broadly match mobility patterns of recent arrivals, the only province which saw net
interprovincial overall population outflows between 2005-15 has been negative
while at the same time observing net interprovincial gains from mobility of recent-
arrived immigrants is Ontario.

Mobility of labour immigrants by years since landing

The previous section analysed mobility patterns one year after landing. However, it
may be that with years spent in Canada, inter-provincial mobility increases.
Figure 4.7 suggests that this is indeed the case. However, comparing one year and
three years after landing for the 2005-15 immigration cohorts, both for federal and
provincial immigrants, the difference in the geographic distribution of immigrants
three years after landing is not large. With the exception of the Atlantic Provinces,
the difference in retention rate one year and three years after landing is less then
five percentage points in all provinces for provincial nominees, and lower than five
percentage points in the four provinces that receive the highest numbers of federally
selected immigrants (Ontario, Quebec, British Columbia and Alberta).

Figure 4.7. Retention rate of principal applicants of the PNP and other labour
immigrants

1 year after landing 3 years after landing

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% PN Fed PN Fed PN Fed PN Fed PN Fed PN Fed PN Fed PN Fed PN Fed PN Fed All
Newfoundland- Prince Edward Nova Scotia New Brunswick Ontario Manitoba Saskatchewan Alberta British Columbia Territories Quebec
and-Labrador Island

Note: The data covers landing years between 2005-15.

Source: Longitudinal Immigrant Database (IMDB) 2015.

Hence, if immigrants move they are more likely to do so in the first year after
landing than in the following two years. In addition, provincially selected
immigrants are more likely to reside in their province of landing three years after
arrival than those federally selected with the exception of Ontario and Prince
Edward Islands.
Figure 4.8 combines the two previously presented mobility matrices and shows
moving patterns one year after landing for federally and provincially selected
immigrants. This figure gives an overview of the mobility of all economic PAs.

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Figure 4.8. Mobility matrix for federally, provincially and Quebec-selected labour
migrants

One year after landing, 2005-15 cohort, dashed circles are provincially selected migrants

Province of Destination
Atlantic British
Provinces Ontario Manitoba Saskatchewan Alberta Quebec
Columbia
Atlantic
Provinces
Province of Residence

Ontario

Manitoba

Saskatchewan

Alberta
British
Columbia
Quebec

Note: Not all provinces/territories had PNPs in place in 2005, compare to Table 4.1. Diagonal
indicates migrants still living in their original province.
Source: Longitudinal Immigrant Database (IMDB) 2015. Data request tracking number: RE-
18-0424.

In absolute numbers, there are more federal immigrants living outside of their
province of destination than provincially selected immigrants. This confirms the
previous observation that the retention rates are higher for provincial than for
federally selected immigrants. It is in line with previous evidence. Pandey and
Townsend (2011[12]) find that “after taking account of provincial economic
conditions, the introduction of PNPs did not lead to a decrease in the retention rates
for any province. In fact, when comparing the retention rates of immigrants through
the federal programmes to those through the PNPs, the retention rates of nominees
were higher for Manitoba, Saskatchewan, Alberta, and British Columbia, and
similar to those of immigrants admitted through the federal programme in the
Atlantic Provinces.” The period considered covers the immigration cohorts until
2005, but the patterns are similar to those of the later cohorts considered here.
Although the comparison between the retention rates of federal and provincial
immigrants is interesting, it remains that the issues raised by the mobility of the two
types of immigrants are different. Whether federally selected immigrants decide to
settle or not in the province of destination, is a zero sum game for the federal
government, as long as they remain in Canada. However, if PNs decide to leave the
province of nomination, it indicates that the selection of the PT may have been
inefficient. The province invested in nominating the immigrant but did not receive
the benefit of doing so. This may be particularly problematic if the immigrants who
leave are the most qualified and those faring better in the labor market.
In terms of labour market outcomes, leavers and stayers are overall similar. The
percentage of immigrants declaring employment income one year after landing is

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only slightly higher for PNs residing in their province of nomination. Alternative
measures of labour market integration such as the percentage of immigrants
declaring employment insurance benefits or social assistance benefits are also very
similar. The only exception are the Atlantic Provinces. Immigrants who settle in the
nominating provinces are more likely to declare employment income one year
(three and five years) after landing than those who settle elsewhere.
PNs are selected based on the criteria of the nominating province. When PNs decide
to live outside of the nominating PT, this is not only an issue for the nominating
province, but it may also be an issue for the receiving province. In fact, PTs choose
PNs to address labour market needs based on defined criteria. The results in the
previous section show that the characteristics of PNs are quite different from those
of federal immigrants, and differ across PTs.
To put the extent to which receiving PNs from other PTs is an issue for the receiving
PTs into perspective one should look at the size of the inflows of PNs; on how the
characteristics of these PNs differ from those of the immigrants living in the PT;
and on the labour market integration of the PNs in the new destination PT. As seen
above, the flows of PNs to PTs other than the nominating PTs represent in some
cases a large share of the immigrants destined to the nominating province. This is
mostly the case for the Atlantic Provinces. However, PNs moving to other provinces
only represent a small share of immigrants in their new destination PTs.

Box 4.2. The Atlantic Immigration Pilot

The Atlantic Immigration Pilot, which is part of Canada’s Atlantic Growth

Strategy, aims to attract and retain skilled workers to fill long-term labour market
needs in the Atlantic Provinces. It is a partnership between the federal government
and provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia and
Prince Edward Island, launched in January 2017.
The pilot is employer-driven, meaning that employers (businesses and not-for-
profit organisations) apply to a province to become designated under the pilot and
can then offer jobs to skilled foreign workers and recent international graduates
from Atlantic educational institutions. These jobs must be in the province where
the designated employer is located. For each job offer, employers must demonstrate
they have not been able to fill that job with local talent, but they do not need a
formal LMIA. The province where the candidate will work must endorse the job
offer. After the endorsement, the candidate can apply for permanent resident status,
and if approved can live and work in Canada permanently.
The Atlantic Immigration Pilot has three programmes for hiring workers. A High-
Skilled, an Intermediate-Skilled, and an International Graduate Program. Each
programme has specific requirements for the employer and the candidate. All
candidates must meet language, educational and work experience requirements and
have sufficient funds to support themselves and their families when coming to

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Canada. The programme offers six-month expedited processing, rather flexible

criteria for employers, and significant settlement support for the entire family.
While initial uptake of the Atlantic Immigration Pilot (which began accepting
applications in March 2017 was slow), the programme has picked up significantly,
with more than 1 400 persons (principal applicants, and spouses and dependents)
granted permanent residence under the programme by the end of 2018.
As of December 31, 2018, more than 2 400 graduates and skilled immigrants have
received job offers, personalised settlement plans, and endorsement from a
province to submit an application to immigrate to Canada. Moreover, over
1 700 employers had been designated to participate in the pilot and over
400 employers use IRCC’s dedicated service channel reserved specifically for AIP
designated employers.

Settlement of provincially selected immigrants within provinces

Settling immigrants in rural and intermediate regions is a challenge for many OECD
countries; s especially so in the case of Canada where population – and especially
past immigrant settlement – was heavily concentrated in a few large metropolitan
areas. In international comparison, Canada has been successful increasing the share
of those living in rural areas (Figure 4.9).

Figure 4.9. How shares of immigrants in rural areas have evolved, relative to change
in urban regions
Change in percentage points, aged 15 and over, 2005-15
4

2 Increase in share of migrants in rural relative to urban regions

-2

-4

-6

-8
Increase in share of migrants in urban relative to rural regions
-10

Note: This data includes individuals landing as economic, family and humanitarian migrants.
Source: OECD/EU (2018[13]).
As mentioned, the PNP has been and still is successfully sharing the benefits of
immigration across the provinces of Canada. However, most of these PNs – as do
federal-and Quebec-selected immigrants – settle in only certain metropolitan and
agglomeration areas within these provinces.8 Among all PNP-selected immigrants
between 2006-16, a full 80% landed in a metropolitan area including in Toronto
and Vancouver.9 While the total number of those migrating to other parts of the

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country has increased by five times and more over this period, their share remains
stable at around 12% landing in agglomerations and around 8% landing in rural
areas in the rest of the country (Figure 4.10).

Figure 4.10. Provincial nominee principal applicants by year of landing and place of
landing

Toronto and Vancouver Census Metropolitan Areas (-Toronto and Vancouver) Census Agglomerations Rural areas

12000

10000

8000

6000

4000

2000

0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Note: Not all provinces/territories had a PNP in the first years shown in this graph. For instance,
Ontario did start its PNP only in 2007, with admissions in the following years. Hence, the PNs living
in Toronto during 2006-08 were selected by other jurisdictions.
Source: Statistics Canada, Table 11-10-0239-01. Income of individuals by age group, sex and
income source, Canada, provinces and selected census metropolitan areas.

A different picture evolves when looking at provinces separately. Overall, the

Atlantic Provinces are more successful in attracting PNs to the more rural areas.
One should note however, that the Atlantic Provinces are much smaller than the
other PTs, and thus census agglomerations are generally closer than in the rural
countryside in the rest of Canada.10 In turn, in the four provinces British Columbia,
Alberta, Saskatchewan and Manitoba, fewer than 30% of PNs land outside the
census metropolitan areas. While Ontario receives a small number of PN-selected
immigrants relative to the many federally selected immigrants, virtually all of these
PNs land in one of the census metropolitan areas and a full 75% in Toronto alone.
In BC, an almost equal share (74%) of PNs land in the largest census metropolitan
area (Vancouver), but the province also attracts over 8% of its provincial nominees
to rural areas. In fact, while PNs are slightly more likely to settle in rural areas, their
settlement patterns are overall similar to those of all labour immigrants in each
province. Even PNs are much more likely to live in metropolitan areas than the
overall Canadian population, regardless of the PT concerns (Figure 4.11).

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196  4. PROVINCIAL MIGRATION MANAGEMENT

Figure 4.11. PNs (principal applicants) landing years 2006-16 by agglomeration size,
compared with the total population, 2016

CMA CA rural area

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Pop PNs Pop PNs Pop PNs Pop PNs Pop PNs Pop PNs Pop PNs Pop PNs
Atlantic Quebec Ontario Manitoba Saskatchewan Alberta British Territories
Provinces Columbia

Note: A census metropolitan area (CMA) must have a total population of at least 100 000 of which
50 000 or more live in the core. A census agglomeration (CA) must have a core population of at
least 10 000.
Source: For PNP-PAs Statistics Canada, Table 11-10-0239-01 Income of individuals by age group,
sex and income source, Canada, provinces and selected census metropolitan areas. For population
Statistics Canada - 2016 Census. Catalogue Number 98-400-X2016202.

It is against this backdrop, and the labour needs of many rural areas facing
population decline, that Canada announced a new pilot programme in January 2019:
the Rural and Northern Immigration Pilot Program. The programme differs in its
approach to the employer-driven Atlantic Immigration Pilot by piloting a
community-driven approach to economic immigration. From January 2019 until
11 March 2019, IRCC accepted applications from interested communities that are
outside of Atlantic Canada and Quebec.
IRCC thereafter announced a number of communities in rural Canada that
participate in this immigration pilot programme. Communities must have a
population of maximum 50 000 people and be located at least 75 km from the core
of a Census metropolitan area, or they must have a population of between
50 000 and 200 000 people and be remotely located from other larger cities.11
Organisations responsible for providing economic development services in the
community could submit an application and will, if selected, manage the pilot for
the community.

Conclusion
Ensuring that the benefits from labour migration are equally shared within the
country, and that policies respond to different local needs while maintaining a
consistent migration management structure is a key challenge for many countries.
Together with Australia, Canada has been at the forefront among OECD countries
in the regionalisation of permanent labour migration. Indeed, in Canada this is a

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 4. PROVINCIAL MIGRATION MANAGEMENT  197

shared responsibility between the federal government on the one side and the
provincial and territorial governments on the other. The increased role played by
the latter in migrant selection has resulted in a more balanced geographic
distribution of permanent labour migrants across the country over the past two
decades.
As permanent migrants enjoy free mobility across Canada, the rather high PT-
retention rate of PT-selected labour migrants and their different skill profile suggest
that these streams are indeed complementary to the federal programmes. What is
more, short-to-mid-term labour market outcomes of PT-selected migrants to date
tend to be largely favourable, with a few exceptions. However, given the significant
growth of the programme in recent years, a continued monitoring seems warranted.
A challenge that remains is the unequal distribution of migrants within PTs. To
address this, a community-driven programme to attract labour migrants to the rural
regions is now being tested. This new and innovative approach builds on another
recent innovation to link selection with retention in the Atlantic provinces.

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198  4. PROVINCIAL MIGRATION MANAGEMENT

Notes

1
Quebec used to have an allocation of economic immigrants under the abolished Live-in Caregiver
Program. This is, however, no longer the case for the federal pilot programmes in the caregiving
sector (Caring for Children and Caring for People with High Medical Needs). These were introduced
in 2014, when Canada terminated the Live-in Caregiver Program. Many provinces have since
created their own caregiving programmes under the PNP, but not Quebec. If a Quebec private
household desired to hire a caregiver, they had to do so through other channels, such as the temporary
worker programme (generally with an LMIA). Provisions for the new caregiver pilots that started in
June 2019 are discussed in Chapter 3 of this review.
2
A 2019 announced pilot programme in Canada (Rural and Northern Immigration Pilot) explores a
similar idea which is however not employer-driven but community-driven and discussed in
subsequent parts of this chapter.
3
SkillSelect is Australia’s Expression of Interest pool, similar to the Express Entry pool in Canada.
4
The shares are based on data that exclude individuals intending to work in a management position
(NOC 0) and cases where the intended NOC is not available.
5
The IMDB 2011 report states that "since the inception of the PN Program in 1998, the focus has
been on immediate occupational needs identified by the participating provinces."
6
This comparison is only partially informative since immigrants that are federally and provincially
selected have different education levels, skills and intended occupations. Ideally, one would also
want to compare immigrants with the same skills levels from the different programmes, and with
native-born of the same skills.
7
Given the high number of bonus points for provincial nominations, and the different selection
criteria of EE compared to the PNP, it would be of interest to study mobility patterns of EE-selected
PNs and non-EE-selected PNs. Given the time lags involved, this analysis will only be possible in a
few years time, however.
8
Note that this is a different definition from the rural/urban distinction shown in Figure 4.9; parts of
census agglomerations may be classified as rural.
9
A census metropolitan area has a total population of at least 100 000 of which 50 000 or more live
in the core. A census agglomeration has a core population of at least 10 000.
10
Neither Prince Edward Island nor the territories have a city defined as a Census Metropolitan
Area.
11
IRCC uses Statistics Canada’s Index of Remoteness to help define which communities are
considered remote and includes communities with a remoteness index equal to, or greater than 0.25.
The Index of Remoteness is an experimental research product determined by distance from another
city that offers public services and by population size.

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 4. PROVINCIAL MIGRATION MANAGEMENT  199

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Recruiting Immigrant Workers
CANADA
Canada has not only the largest in terms of numbers, but also the most elaborate and longest-standing skilled
labour migration system in the OECD. Largely as a result of many decades of managed labour migration, more
than one in five people in Canada is foreign-born, one of the highest shares in the OECD. 60% of Canada’s
foreign-born population are highly educated, the highest share OECD-wide. The recent introduction of Express
Entry, a two-step selection system based on an initial pre-sreening of suitable candidates who enter a pool
by Expression of Interest and subsequent selection of the most skilled candidates from the pool, has further
enhanced the competitive edge of the selection system relative to other countries. It also ensures that those
with the skills to succeed are admitted to Canada in a quick and efficient way. Core to Canada's success is not
only the elaborate selection system itself, but also the innovation and infrastructure around it, which ensures
constant testing, monitoring and adaptation of its parameters. This includes a comprehensive and constantly
improving data infrastructure, coupled with the capacity to analyse it, and swift policy reaction to new evidence
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